Under what conditions will Margaritaville not be held liable for unfulfilled commitments of the CRS Supplier related to Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
In no event shall Margaritaville be held liable to the extent a commitment or obligation of CRS Supplier has not been fulfilled through no fault of Margaritaville.
Margaritaville will reasonably assist Customer with respect to any issues, questions or conflicts with the CRS Supplier arising under these CRS Terms of Use and the CRS Supplier Agreement, including, but not limited to, enforcing the CRS Supplier's obligations with respect to a data security breach affecting Customer.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Margaritaville will not be held liable if the CRS (Central Reservation System) Supplier fails to fulfill a commitment or obligation, provided that the failure is not due to any fault on Margaritaville's part. This condition is outlined within the context of the relationship between Camp Margaritaville, its franchisees (referred to as 'Customer'), and the CRS Supplier. The franchisee acknowledges that Margaritaville has certain protections regarding guest information and reservation data, which are extended to the franchisee on a pass-through basis. However, the franchisee is not a third-party beneficiary of any agreement between Margaritaville and the CRS Supplier; only Margaritaville has a direct relationship with the CRS Supplier.
This arrangement means that while Camp Margaritaville aims to assist franchisees with any issues arising from the CRS Terms of Use and the CRS Supplier Agreement, including enforcing the CRS Supplier's obligations in case of a data security breach, the franchisee's recourse is primarily through Margaritaville. The document emphasizes that Margaritaville will reasonably assist the franchisee in resolving conflicts with the CRS Supplier, but its liability is limited to situations where it is directly at fault.
For a prospective Camp Margaritaville franchisee, this clause highlights the importance of understanding the role and limitations of the CRS Supplier. While Camp Margaritaville commits to providing support and acting as an intermediary, the franchisee bears some risk related to the CRS Supplier's performance. It would be prudent for a potential franchisee to inquire about the CRS Supplier's track record, the specific service level agreements in place, and the typical resolution process for disputes involving the CRS Supplier. Understanding these aspects can help a franchisee assess the potential risks and prepare for possible challenges related to the reservation system.