Under what circumstances is Camp Margaritaville liable for the costs of comparable accommodations and reasonable expenses when a discrepancy in availability occurs?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, Camp Margaritaville may be liable for the costs of comparable accommodations and reasonable expenses when a discrepancy in availability occurs. Specifically, this liability arises if the discrepancy is due to a failure of Camp Margaritaville's or its CRS (Central Reservation System) Supplier's interface or other breach of their obligations. In such cases, Camp Margaritaville is responsible for covering the costs of comparable accommodations and any reasonable expenses incurred by the affected guest.

This means that if a Camp Margaritaville franchisee confirms a reservation through the CR System, but the accommodations are not available upon the guest's arrival due to errors or failures within Camp Margaritaville's or its supplier's systems, Camp Margaritaville, not the franchisee, will be responsible for finding and paying for alternative accommodations and covering reasonable expenses for the guest. This protects the franchisee from financial responsibility for errors that are outside of their direct control.

However, it's important to note that the franchisee is generally responsible for keeping property information current and accurate in all databases and for informing guests of any developments affecting their reservations. If the discrepancy arises due to the franchisee's failure to maintain accurate information or to inform guests, the franchisee will likely be held responsible for the costs, not Camp Margaritaville. This division of responsibility highlights the importance of franchisees maintaining accurate and up-to-date information in the reservation system to avoid potential liabilities.