Under what condition can Margaritaville terminate the Camp Margaritaville Loyalty Program Terms of Use?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
5.2 Termination.
- (a) Termination of these Loyalty Program Terms of Use is automatically effective upon termination of the Branding Agreement between Margaritaville and Customer.
- (b) Margaritaville may terminate these Loyalty Program Terms of Use, in its sole discretion, upon Customer's inability or failure to honor the terms and perks of the Brand Affinity and Perks Program. In the event of termination by Margaritaville, Customer shall pay to Margaritaville a termination fee equal to the amount of 6 months' Loyalty Program fees.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Margaritaville can terminate the Loyalty Program Terms of Use under two primary conditions. First, termination is automatically effective if the Branding Agreement between Margaritaville and the franchisee is terminated. Second, Margaritaville has the discretion to terminate the Loyalty Program Terms of Use if the franchisee is unable or fails to honor the terms and perks of the Brand Affinity and Perks Program.
In the event that Camp Margaritaville terminates the Loyalty Program Terms of Use due to the franchisee's inability or failure to uphold the program's terms, the franchisee is obligated to pay Margaritaville a termination fee. This fee is equivalent to six months' worth of Loyalty Program fees.
This condition highlights the importance of adhering to the terms of the Brand Affinity and Perks Program. Franchisees need to ensure they can meet the obligations to avoid potential termination and associated fees. The automatic termination linked to the Branding Agreement underscores the interconnectedness of the franchise agreement and the loyalty program.