What is the significance of the 'Camp Margaritaville System' in the context of operating a Camp Margaritaville franchise?

Franchisor grants Franchisee, and Franchisee accepts, the nonexclusive right and obligation to use the Camp Margaritaville System during the Term (defined below in Section 1.03) to build or convert, and operate, the Resort at the Site under the Camp Margaritaville Intellectual Property in accordance with this Agreement's terms.

Franchisee agrees to develop the Resort in accordance with the Camp Margaritaville System's details, as set forth in the System Standards or otherwise in writing. Franchisee must bear the entire cost of developing and constructing the Resort, including professional services, financing, insurance, licensing, contractors, permits and FF&E.

• (c) Franchisee must at all times ensure that the Resort is operated in compliance with the Camp Margaritaville System, the Manual, and all other written System Standards. System Standards may regulate, among other things:

  • (i) any aspect of the Resort's operation which impact the reputation and goodwill of the brand;
  • (ii) standards relating to the design, maintenance, décor, life safety, cleanliness, and sanitation, including periodic cleaning, repainting, and redecorating of the Resort in compliance with the Camp Margaritaville System;
  • (iii) the provision of efficient, courteous, competent, prompt, and high-quality service to the public;
  • (iv) quality standards and the types of services, concessions, amenities, and other items that Franchisee may or must use, promote, or offer at the Resort;
  • (v) standards and specifications for FF&E, supplies, and other goods and services that the Resort uses or sells;
  • (vi) standards for the Resort technology and other system components;
  • (vii) use of the Camp Margaritaville Intellectual Property, including the display, style, location, and type of signage and all uses of the Camp Margaritaville Intellectual Property and/or references to the Resort in connection with any social networking or social media sites or tools;
  • (viii) directory and reservation service listings of the Resort and methods for using required and authorized technology systems;
  • (ix) creating a favorable response to the name "Camp Margaritaville Resorts" and the names of any brand extensions, other Camp Margaritaville Intellectual Property, and brand-specific programs bearing the "Margaritaville" name;
  • (x) honoring all nationally recognized credit cards and other payment mechanisms that Franchisor periodically designates and entering into all necessary credit card and other agreements with the issuers of those cards and other applicable parties;
  • (xi) complimentary and reduced-rate Overnight Accommodation policies applicable to all similarly situated Camp Margaritaville Resorts (subject to Reasonable Deviations);
  • (xii) secret shopper programs, guest relations programs, and guest complaints and resolution programs, including reimbursing dissatisfied guests for their costs of staying at the Resort and participating in other guest satisfaction programs in the manner Franchisor periodically specifies;
  • (xiii) delivering to Franchisor or otherwise providing Franchisor access to the Guest Profile Data as described in Section 4.05;
  • (xiv) record retention policies and programs;

• (xv) policies and procedures regarding the collection, storage, use, processing and transfer of personal data (which includes information that identifies or is capable of identifying an individual), payment card data, or other financial data and information, including any data privacy or data security compliance programs, any payment card industry data security standards, together with any related audit or certification requirements, and all other applicable data protection and privacy laws and regulations;

• (xvi) quality assurance measures for the Resort and the Camp Margaritaville System, including deficiency action policies and other measures concerning the Resort's compliance with the Camp Margaritaville System, the Manual, and System Standards; and

• (xvii) participation in and compliance with the terms of all of Franchisor's mandatory marketing, reservation service, website/CMS platform and analytics, social media platforms and structure, photography and videography program rate and inventory management, advertising, cooperative advertising, guest frequency, social responsibility, discount or promotional, customer award, customer loyalty, Internet, computer, training, financial reporting and operating programs, including: (i) an approved PMS that interfaces with the CRS or any other central reservation system Franchisor periodically adopts; and (ii) a financial reporting software or service of Franchisor's choosing to interface with the Resort's POS/PMS system and transmit to Franchisor real-time data related to revenue and overall resort performance.

Franchisor reserves the right to collect any and all data and information that relates to the overall performance of the Resort.

Franchisor may periodically establish and/or coordinate these programs with third parties Franchisor designates.

These third parties may (but need not) be Franchisor's Affiliates.

Franchisee must sign and comply with any license, participation and other agreements Franchisor periodically specifies relating to these programs.

Franchisor may arrange with its Affiliates or other third parties to provide development, marketing, operations, administration, technical, and support functions, facilities, services, and/or personnel related to the Camp Margaritaville System. Franchisor and its Affiliates also may use any functions, facilities, programs, services, and/or personnel used in connection with the Camp Margaritaville System in Franchisor's and its Affiliates' other business activities, even if these other business activities compete with the Resort or the Camp Margaritaville System.

• (f) If required by Franchisor, Franchisee remodels the Resort to Franchisor's then-current brand image and technological standards for Camp Margaritaville Resorts within 6 months after the expiration of the Initial Term, which may be set forth in a new property improvement plan and/or technology improvement plan. "Remodel" shall mean to refurbish and remodel the Resort, at Franchisee's expense, to conform to the then-current standards for the Camp Margaritaville System, design and decor, fixtures, furnishings, equipment, technology, trade dress, color scheme and presentation of Margaritaville Intellectual Property consistent with the design concepts then in effect for new RV resorts using the Camp Margaritaville System, including, without limitation, such structural changes, remodeling, redecoration and other modifications to existing improvements as Franchisor deems necessary in its commercially reasonable judgment.

Source: Item 23 — RECEIPTS (FDD pages 72–406)