Are there any goods or services that I must buy directly from the franchisor or its affiliates for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ses and leases was $926,257. In 2024, the percentage of Margaritaville Holdings LLC's revenue received from franchisee required purchases and leases was 0.89%.
You currently must acquire the PMS, CMS, HSIA, POS System, CRS, CRM, EPP, financial reporting software, music distribution system, video distribution systems, electronic door lock system, payment gateway, and gift card solution only from suppliers that we designate. You also must acquire other required systems that we specify from suppliers we approve.
You must purchase or lease, install, and maintain at the Resort all FF&E and other products that we periodically specify for the Resort, consistent with the Camp Margaritaville System. You may not install at the Resort, without our prior written consent, any FF&E or other products we have not previously approved. We issue and modify System Standards based on our, our affiliates' and our franchisees' experience in operating Camp Margaritaville Resorts. Our System Standards may impose minimum requirements for delivery, performance, reputation, prices, quality, design, and appearance, among other factors. You must ensure that the Resort strictly complies with all Applicable Law and maintains adequate insurance policy coverage in the amounts that we periodically specify. Our Manual (described in Item 11) or other communications will identify our System Standards and/or names of approved suppliers.
We have negotiated purchase arrangements with Merchandise suppliers, excluding price terms, to ensure brand consistency and quality of Merchandise for franchisees that offer Merchandise through an FBR Rider. We do not currently negotiate other purchase agreements for the benefit of franchisees, but we reserve the right to do so in the future. We do not provide material benefits (including, but not limited to, renewal or granting additional franchises) to a franchisee based on franchisee's purchase of particular products or services or use of designated or approved suppliers.
If you wish to obtain any FF&E, supplies, or other goods and services from a source that we have not previously approved, you must send us a written request with any information and samples we consider necessary to determine whether the product, service and source meet our then current criteria. We will review your request and respond to your request within a reasonable time period (typically 30 days) after receiving all the information we need to evaluate the request. We may charge you our costs to review your request and evaluate the proposed product, service and/or source. We may condition our approval on standards and requirements relating to quality, quantity, warranties, prices, volume capability, frequency of delivery, distribution methods and locations, standards of service (including prompt attention to complaints), consistency, reliability, financial capability, labor and customer relations, the willingness and ability to comply with our vendor compliance guide and other criteria. You may not purchase any FF&E, supplies or other goods or services for the Resort unless we have approved the supplier or, for those goods and services that we do not require you to buy only from designated or approved sources, unless we have
confirmed that the goods, services, or supplies meet our System Standards.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 40–45)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees are required to purchase a significant portion of their goods and services from approved or designated suppliers, with an estimated 80% of required goods and services falling under this category. While there aren't many items you must buy directly from Camp Margaritaville or its affiliates, franchisees must acquire specific systems like the PMS, CMS, HSIA, POS System, CRS, CRM, EPP, financial reporting software, music and video distribution systems, electronic door lock system, payment gateway, and gift card solution from designated suppliers.
Camp Margaritaville also mandates the use of an approved designer (McBride Designs or another approved designer) for implementing the brand design. Franchisees must purchase all furniture, OS&E, and nonalcoholic beverages from approved brand suppliers or a local Coca-Cola Bottling Company distributor. They must also feature Landshark Lager® and other Margaritaville®-branded alcohol beverages as preferred products. Additionally, franchisees need to obtain a SiriusXM Radio commercial rights license or a subscription to an approved audiovisual vendor, use approved platforms like Medallia for guest satisfaction measurement and CMX1 for quality assurance audits, and utilize the annual employee survey (MSAT). Cintas is the designated supplier for employee uniforms. If applicable under an FBR Rider, all merchandise must come from approved vendors. TAPS, p.s.c. or another approved technology consultant must be used for setting up technology systems.
For FBR Units, franchisees are obligated to purchase approximately 80% of the core menu food items from SYSCO, with the remaining menu items sourced from other approved suppliers like Wolverine, Halperns, Farmer Brothers, and Produce Alliance. Tri-Mark is the designated supplier for restaurant and bar layouts and equipment. Camp Margaritaville retains the right to update these System Standards, potentially requiring franchisees to acquire certain items and services directly from them or their affiliates at prices they determine. Camp Margaritaville and its affiliates can profit from these arrangements by charging prices exceeding their costs.
Camp Margaritaville also requires franchisees to maintain specific insurance coverage from approved insurance companies, meeting minimum standards and coverage amounts. These policies must name Camp Margaritaville as an additional insured. While Camp Margaritaville does not currently have purchasing or distribution cooperatives, they may negotiate purchase arrangements with merchandise suppliers to ensure brand consistency and quality. Franchisees need to seek approval for any alternative sources of FF&E, supplies, or other goods and services not already approved, and Camp Margaritaville may charge costs for reviewing such requests. Deviation from these standards may be allowed in certain circumstances based on the market area or specific resort conditions.