Is Camp Margaritaville a third-party beneficiary of any commitment by or agreement with the CRS Supplier?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer acknowledges that CRS Supplier has set forth certain protections for Margaritaville with respect to Guest Information and Reservation Data in connection with the matters set forth in this Section 10 and in these CRS Terms of Use, and that Margaritaville has extended the same to Customer pursuant to this Section 10 on a passthrough basis.
Notwithstanding the foregoing, Customer is not a third-party beneficiary of any commitment by or agreement with CRS Supplier, and only Margaritaville maintains privity with CRS Supplier for any matter set forth in these CRS Terms of Use.
In no event shall Margaritaville be held liable to the extent a commitment or obligation of CRS Supplier has not been fulfilled through no fault of Margaritaville.
Margaritaville will reasonably assist Customer with respect to any issues, questions or conflicts with the CRS Supplier arising under these CRS Terms of Use and the CRS Supplier Agreement, including, but not limited to, enforcing the CRS Supplier's obligations with respect to a data security breach affecting Customer.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the customer (franchisee) is not a third-party beneficiary of any commitment by or agreement with the CRS (Central Reservation System) Supplier. Only Margaritaville maintains privity with the CRS Supplier for any matter set forth in the CRS Terms of Use. This means that while the franchisee uses the CRS, their legal relationship and recourse regarding the system is with Camp Margaritaville, not directly with the CRS Supplier. Any issues or conflicts with the CRS Supplier arising under the CRS Terms of Use and the CRS Supplier Agreement, including data security breaches, will be reasonably assisted by Margaritaville.
This arrangement means that Camp Margaritaville acts as an intermediary between the franchisee and the CRS Supplier. The franchisee must rely on Camp Margaritaville to enforce the CRS Supplier's obligations. This is a common arrangement in franchising, where the franchisor manages relationships with third-party vendors to ensure brand consistency and quality control.
Camp Margaritaville will reasonably assist the franchisee with respect to any issues, questions, or conflicts with the CRS Supplier arising under the CRS Terms of Use and the CRS Supplier Agreement, including, but not limited to, enforcing the CRS Supplier's obligations with respect to a data security breach affecting the franchisee. However, Camp Margaritaville will not be held liable if a commitment or obligation of the CRS Supplier has not been fulfilled through no fault of Margaritaville. This clause protects Camp Margaritaville from liability for the CRS Supplier's failures, provided Margaritaville is not at fault.
For a prospective franchisee, this means that resolving issues with the CRS will involve working through Camp Margaritaville rather than directly with the CRS Supplier. While Camp Margaritaville is obligated to assist, their liability is limited if the supplier's failure is not due to Margaritaville's actions. Franchisees should ensure they understand the support Camp Margaritaville provides and the limitations of that support regarding the CRS.