Under what conditions can the Camp Margaritaville agreement be changed or modified?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 2.08 Opening Deadline and Extension.
- (b) If Franchisee wants an extension of the Opening Deadline, Franchisee must submit a written request and a $10,000 extension fee to Franchisor before the Opening Deadline. If Franchisor approves the extension, Franchisor will set a new Opening Deadline, the extension fee will be non-refundable, and Franchisor may, at its option, require Franchisee to modify any previously-approved Design Plans or PIP (if applicable pursuant to Section 2.04) to comply with the then-current design, equipment, and other aspects of the Camp Margaritaville System.
Section 12.02 Assignment or Transfer by Franchisee; Change of Control.
- (a) Transfer. In the event that Franchisee desires to effect a Change of Control or assign, sublicense or transfer its rights and/or obligations under this Agreement (each, a "Transfer"), Franchisee shall provide Franchisor notice of such anticipated Transfer as soon as reasonably practicable but in no event less than 30 days before the Transfer is to occur. Accompanying such notice, the transferee shall submit a copy of the then-current franchise application and the then-current application fee. Franchisor shall determine whether to approve the Transfer within 15 calendar days, which will not be unreasonably withheld if the following conditions are met:
- (i) the Transfer is not to a Competing Brand;
- (ii) the Transfer would not materially or detrimentally harm the Franchisor or its Affiliates;
- (iii) the transferee and each of its direct or indirect owners (if the transferee is a legal entity) has, in Franchisor's sole discretion, the necessary business experience, aptitude, and financial resources to operate the Resort and meets Franchisor's thencurrent standards for Camp Margaritaville Resorts franchisees;
- (iv) Franchisee has paid all amounts due to Franchisor and undisputed amounts due to third-party vendors related to the Resort and is in substantial compliance with this Agreement during the 60-day period prior to requesting Transfer and during the period after the request was made but before the Transfer is effective;
- (vi) the transferee and its owners (if the Transfer is of this Agreement), or Franchisee and its Owners (if the Transfer is of an ownership interest that results in Control by the transferor in Franchisee or one of its Owners with Control), sign Franchisor's thencurrent form of franchise agreement and related documents for use with existing Camp Margaritaville Resorts (including guarantees and assumptions of obligations), any and all of the provisions of which may differ materially from any and all of those contained
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, the franchise agreement can be modified under specific circumstances, particularly concerning extensions to the opening deadline and transfers of the agreement.
If a Camp Margaritaville franchisee needs more time to open their resort, they can request an extension of the opening deadline. To do so, the franchisee must submit a written request along with a $10,000 extension fee to Camp Margaritaville before the original deadline. If Camp Margaritaville approves the extension, they will set a new opening deadline. However, Camp Margaritaville may also require the franchisee to modify previously approved design plans or property improvement plans to comply with the current standards of the Camp Margaritaville system. The extension fee is non-refundable, regardless of whether the extension is ultimately used.
Additionally, the agreement can be modified through a transfer of rights or change of control. If a franchisee desires to transfer their rights or obligations under the agreement, they must notify Camp Margaritaville at least 30 days before the transfer. The proposed transferee must submit a franchise application and the current application fee. Camp Margaritaville will then determine whether to approve the transfer, which will not be unreasonably withheld if certain conditions are met. These conditions include that the transfer is not to a competing brand, would not harm Camp Margaritaville, and the transferee meets Camp Margaritaville's standards for franchisees. The franchisee must also be in compliance with the agreement and have paid all due amounts. The transferee may also be required to sign Camp Margaritaville's current form of franchise agreement, which may contain provisions that differ materially from the original agreement.