Under what circumstances might Camp Margaritaville require a customer to reimburse Margaritaville, and what additional fee is applied?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
h reservation. In the event that Customer cannot provide an overnight accommodation to a guest due to overbooking, lack of reservation record, human errors or any other reasons, Customer will be responsible for providing an alternative accommodation for such guest. Customer also agrees to cover the reasonable expenses incurred by the guest in obtaining such accommodations; provided that Margaritaville shall be liable for any such costs, up to an amount not to exceed one percent of the invoice for services rendered under these CRS Terms of Use for the then-current month, in the event Margaritaville (or the Third-Party Call Center Provider) has failed to input proper information into the CR System or other applicable reservation system. Customer agrees to indemnify and hold Margaritaville harmless from any liability in connection with Customer's failure to honor a confirmed reservation, or in connection with improper charges imposed on a reservation holder. Subject to Margaritaville's (or the Third-Party Call Center Provider's) obligation to input proper information into the CR System, if Margaritaville makes any payment to or enters into settlement with a holder of a reservation with respect to a claim that Customer or Property failed to provide accommodations as confirmed, or charged a holder of a reservation improperly,
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a customer may be required to reimburse Margaritaville under specific conditions related to reservation issues. If Margaritaville makes a payment to a customer or settles a claim because the Camp Margaritaville property failed to provide accommodations as confirmed or charged a customer improperly, the customer must immediately pay those amounts to Margaritaville upon demand. This condition is subject to Margaritaville's obligation to input proper information into the CR System.
Additionally, if a Camp Margaritaville customer does not pay within 30 days of notice of an overdue payment, Margaritaville has the right to suspend the Call Center Services for the applicable property until the overdue payment is made. In this case, a reactivation fee of $250 will be assessed if service has been disconnected or suspended due to non-payment.
This means that Camp Margaritaville franchisees are responsible for ensuring accurate charges and honoring confirmed reservations. Failure to do so could result in the franchisee being required to reimburse Margaritaville for payments made to customers to resolve issues. Franchisees must also ensure timely payments to avoid service suspensions and reactivation fees.