Under what conditions can a Camp Margaritaville franchisee source merchandise from a vendor of their choice?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Franchisor and Franchisee further acknowledge that in executing this Rider and modifying certain of the defined terms in the Agreement and adding additional defined terms to the Agreement, that during the Term, Franchisor is granting and Franchisee accepting a limited non-exclusive right to sell merchandise utilizing the Camp Margaritaville Intellectual Property ("Merchandise") at the Resort, subject to the following conditions:
- 3.2.1 Notwithstanding any other provision of the Agreement, Franchisor's Affiliate or designee (the "Merchandise Supplier") shall have the exclusive right (but not the obligation) to supply the Merchandise for the Resort (including the Retail Stores), provided, however, Franchisor will use all commercially reasonable efforts to ensure that all types of Merchandise customary for a property similar to the Resort are available at competitive prices and in adequate quantities;
- 3.2.2 If the Merchandise Supplier declines to supply any such Merchandise, then Franchisee shall have the right to source the Merchandise from a vendor of its choice, subject to Franchisor's prior approval pursuant to Article V of the Agreement; and
- 3.2.3 Regardless of source, Franchisee shall have no right to sell any Merchandise via the Internet or catalogs.
- 3.3 All sales from the Restaurants and Retail Stores (including all Merchandise sales) shall be included in the calculation of Gross Revenue as provided in the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee's ability to source merchandise from a vendor of their choice is contingent on the Merchandise Supplier, which is an affiliate or designee of Camp Margaritaville, declining to supply the merchandise. The Merchandise Supplier has the exclusive right, but not the obligation, to supply merchandise for the resort, including its retail stores. Camp Margaritaville will use commercially reasonable efforts to ensure that all types of merchandise customary for a property similar to the Resort are available at competitive prices and in adequate quantities.
If the Merchandise Supplier declines to supply certain merchandise, the franchisee then has the right to seek an alternative vendor. However, this right is subject to Camp Margaritaville's prior approval, as outlined in Article V of the agreement. This means that even if the primary supplier cannot provide the merchandise, the franchisee must still obtain permission from Camp Margaritaville before purchasing from another source.
Regardless of the source of merchandise, Camp Margaritaville franchisees are prohibited from selling any merchandise via the Internet or catalogs. All sales from the restaurants and retail stores, including merchandise sales, must be included in the calculation of gross revenue, as specified in the agreement.