Under what circumstances is the Camp Margaritaville Customer not responsible for honoring a confirmed reservation?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Except in the event of CR System errors attributable to Margaritaville or its CRS Supplier, to include any delay or breach of a Service Level Agreement or failure by Margaritaville or the CRS Supplier to reconcile Customer's PMS to the CR System, Customer understands and agrees with Margaritaville, to honor the confirmed reservation of the holder of a reservation confirmed on behalf of a Property through the CR System at the rate, terms and for the period of the stay so confirmed.
Customer agrees that it will be responsible to obtain comparable accommodations, goods or services, at no greater cost, for any holder of a reservation for whom a booking has been confirmed and for whom no accommodations, goods and/or services are available upon the terms confirmed upon arrival.
Customer also agrees to cover the reasonable expenses incurred by the guest in obtaining such accommodations and services.
Margaritaville acknowledges and agrees that, to the extent any such discrepancy in availability is due to a failure of Margaritaville's or its CRS Supplier's interface or other breach of Margaritaville's or its CRS Supplier's obligations, Margaritaville shall be liable for the costs of such comparable accommodations and reasonable expenses.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee (referred to as Customer) is generally obligated to honor confirmed reservations made through the CR System at the agreed-upon rate, terms, and period of stay. However, there is an exception: the Customer is not responsible for honoring a confirmed reservation in the event of CR System errors attributable to Margaritaville or its CRS Supplier. These errors include any delay or breach of a Service Level Agreement or failure by Margaritaville or the CRS Supplier to reconcile the Customer's PMS (Property Management System) to the CR System.
If such a system error occurs, the responsibility for costs shifts to Margaritaville. Otherwise, if a Camp Margaritaville franchisee cannot provide accommodations to a guest with a confirmed reservation due to overbooking, lack of reservation record, human errors, or any other reason, the franchisee is responsible for securing alternative accommodations of comparable quality at no extra cost to the guest. The franchisee must also cover any reasonable expenses the guest incurs in obtaining these alternative accommodations.
Furthermore, the Camp Margaritaville franchisee agrees to indemnify and hold Margaritaville harmless from any liability connected to the franchisee's failure to honor a confirmed reservation or from improper charges imposed on a reservation holder. However, this is subject to Margaritaville's obligation to input proper information into the CR System. If Margaritaville makes any payment to a reservation holder due to the franchisee's failure to provide accommodations as confirmed or due to improper charges, the franchisee must immediately reimburse Margaritaville for those amounts upon demand.