Under what circumstances can the Camp Margaritaville Franchise Agreement term be terminated before its natural conclusion?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that the Marketing Provider Agreement terminates for any reason, Margaritaville shall have the option, in its sole discretion, to terminate this Agreement upon the lesser of: (a) 30 days prior written notice; or (b) the termination period provided under the Marketing Provider Agreement.
- 7.5 Termination of Branding Agreement. Termination of this Agreement shall be automatically effective upon termination of the Branding Agreement.
- 7.6 Breach. In the event a party has failed to perform any obligation required to be performed under this Agreement or a Statement of Work and such failure is not corrected within thirty (30) days from receipt of written notice (the "Cure Period") advising of such failure from the other party, such other party may terminate the Statement of Work(s) to which such failure applies. The parties agree that the Cure Period may be modified as provided in a Statement of Work.
- 7.7 Nonpayment by Company. Margaritaville may terminate this Agreement before the expiration date of the Term on written notice if Company fails to pay any amount when due hereunder and such failure continues for 30 days after Company's receipt of written notice of nonpayment.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, the initial term of the Franchise Agreement is 20 years from the opening date but can be terminated earlier under certain conditions.
One such condition arises if the franchisee fails to register to sell dwellings and rent vacation rentals within 90 days of the effective date, in compliance with applicable law, including the Interstate Land Sales Full Disclosure Act. In this case, Camp Margaritaville has the right to terminate the Rider immediately.
Additionally, the agreement can be terminated if the Marketing Provider Agreement terminates for any reason, giving Camp Margaritaville the option to terminate with 30 days' written notice or the termination period provided under the Marketing Provider Agreement, whichever is shorter. The agreement also terminates automatically if the Branding Agreement is terminated. Furthermore, either party can terminate the agreement if the other party materially breaches the agreement and fails to correct the breach within 30 days of written notice. Camp Margaritaville can also terminate the agreement if the franchisee fails to pay any amount due and such failure continues for 30 days after written notice of nonpayment.
Customer may terminate these Terms of Use, without liability of any kind or nature, in the event that the Property is sold to an unrelated third party as and if permitted by the Branding Agreement.