Under what condition will Camp Margaritaville not unreasonably withhold acceptance of a management company or designated person to manage the Resort?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not unreasonably withhold our acceptance if the management company, the designated person(s), or you (as applicable) meet our minimum qualifications and ensure that its or your personnel attend and satisfactorily complete all of our required training programs (as described in Item 11). If we approve a management company or other designated person(s), as a condition of that approval, the management company must sign the documents we require to protect our Camp Margaritaville Intellectual Property, Copyrighted Materials, and Confidential Information and reflect its agreement to perform its management responsibilities and operate the Resort in compliance with the Franchise Agreement ("Management Rider"). Our current form of Management Rider is attached as Exhibit C-5.
We may refuse to accept a management company or designated person(s) that is a Brand Owner. "Brand Owner" means any entity that (a) is either a franchisor or owner of a Competing Brand (defined below), (b) manages or otherwise operates lodging properties exclusively for the franchisor or owner of a Competing Brand, or (c) is an affiliate of any entity described in (a) or (b) above. A "Competing Brand" is a lodging concept that has at least 5 lodging properties operating under that concept's trade name anywhere in the world and that, in our reasonable opinion, competes with Camp Margaritaville Resorts. If you are managing the Resort and at any time fail to meet our minimum qualifications (as we may periodically modify them) or to comply with any Franchise Agreement provision concerning the Resort's management or operation, then we may revoke our approval of you as the Resort's manager. You then must promptly appoint another designated person(s) or engage another management company we approve. If a management company or designated person(s) is managing the Resort, they must at all times meet our minimum qualifications (as we may periodically modify them) and must not become a Brand Owner.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 62–63)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Camp Margaritaville will not unreasonably withhold acceptance of a management company, designated person, or the franchisee themselves to manage the Resort if they meet Camp Margaritaville's minimum qualifications. Additionally, the management company or designated person must ensure that their personnel attend and satisfactorily complete all of Camp Margaritaville's required training programs, as detailed in Item 11 of the FDD.
If Camp Margaritaville approves a management company or designated person, that company must sign documents to protect Camp Margaritaville's intellectual property, copyrighted materials, and confidential information. This agreement, called a Management Rider, also ensures the management company performs its responsibilities and operates the Resort in compliance with the Franchise Agreement. The current form of the Management Rider is attached as Exhibit C-5.
Camp Margaritaville may refuse to accept a management company or designated person if that entity is a Brand Owner, meaning they are a franchisor or owner of a Competing Brand, manage lodging properties exclusively for a Competing Brand, or are an affiliate of such an entity. A Competing Brand is defined as a lodging concept with at least 5 properties operating under its trade name that Camp Margaritaville reasonably believes competes with its Resorts. If a franchisee managing the Resort fails to meet minimum qualifications or comply with the Franchise Agreement, Camp Margaritaville may revoke its approval, requiring the franchisee to appoint another approved manager. The management company or designated person must also meet the minimum qualifications and cannot become a Brand Owner.