Under what conditions is a Camp Margaritaville franchisee entitled to an automatic renewal of their franchise rights?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
agreements. You should read these provisions in the agreements attached to this disclosure document.
* For purposes of the table below: "LR" refers to the Lodge Rider and "DR" refers to the Dwellings Rider
THE FRANCHISE RELATIONSHIP
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 1.02 | Initial term is twenty (20) years |
| b. | Renewal or extension of the term | Section 1.03 | If you are in good standing and satisfy certain conditions (as described in 17.c. below) are met, then you are entitled an automatic renewal of your franchise rights for one additional ten (10) year term |
| c. | Requirements for franchisee to renew or extend | Section 1.03 | Your renewal right permits you to remain as a franchisee after the initial term of your Franchise Agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal. When renewing, you may be asked to sign a contract with materially different terms and conditions than your original Franchise Agreement. Franchisee must pay a $50,000 renewal fee and comply with the conditions precedent to renewal, including: written notice of intent 12-18 months prior to expiration; not be in default; franchisee still has ownership of site; franchisee agrees |
| Provision | Section in franchise or other agreement | Summary | |
| ---- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| to remodel to the Resort's then | |||
| current standards; execution o |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 64–68)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee may be entitled to an automatic renewal of their franchise rights for one additional ten-year term if they are in good standing and satisfy certain conditions. The initial franchise term is twenty years.
To remain a Camp Margaritaville franchisee after the initial term, the franchisee must meet all required conditions for renewal. These conditions include providing written notice of intent to renew 12-18 months prior to the expiration of the current term, not being in default, and still having ownership of the site.
Additionally, the Camp Margaritaville franchisee must agree to remodel the Resort to the then-current standards, execute the then-current form of the franchise agreement, and execute the then-current release of the franchisor and its affiliates from any and all claims. The franchisee must also pay a $50,000 renewal fee. Prospective franchisees should note that when renewing their Camp Margaritaville franchise agreement, they may be asked to sign a contract with materially different terms and conditions than their original agreement.