Under what conditions can Margaritaville terminate the CRS Terms of Use for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
7. Termination.
- A. Termination for Breach. Either party may terminate these CRS Terms of Use in the event of a material breach by the other party that remains uncured after sixty (60) days following written notice to the defaulting party of the breach.
- B. Suspension for Non-Payment. In the event Customer does not pay undisputed amounts within thirty (30) days of the date of Margaritaville's invoice, Margaritaville shall have the right to suspend access to CRS Services with fifteen (15) days prior written notice to Customer until payment of such overdue amounts has been made.
- C. Property Termination. Customer may terminate these CRS Terms of Use, without liability of any kind or nature, in the event that the Property is sold to an unrelated third party as and if permitted by the Branding Agreement. Customer will give Margaritaville at least ninety (90) days advance written notice (unless a shorter notice period is allowed by the Branding Agreement) and will ensure that all invoices for services for such Property have been paid through the termination date.
- D. Effects of Termination. Upon expiration or termination of these CRS Terms of Use, Customer shall cease to utilize the CR System. In no event shall Customer use the CR System to promote or book accommodations for any re-brand of the Property after the Term.
- E. Early Termination Fee. Customer will remain liable for all amounts due to Margaritaville under these CRS Terms of Use if these CRS Terms of Use are terminated early by Customer as permitted herein or by Margaritaville due to Customer's material breach. In the event these CRS Terms of Use are terminated prior to the expiration of any Term for any reason other than due to a material breach of the Agreement by Margaritaville, Customer agrees to pay a termination fee equal to the average of the monthly payments due under these CRS Terms of Use multiplied by the number of months remaining in the Term (less any Non-Implementation Fee paid).
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Margaritaville can terminate the CRS (Camp Reservation System) Terms of Use under several conditions. The CRS Terms of Use will automatically terminate if the Branding Agreement is terminated. Additionally, if the CRS Supplier Agreement terminates, Margaritaville has the option to terminate the CRS Terms of Use with either sixty days prior written notice or the termination period provided under the CRS Supplier Agreement, whichever is shorter, but not less than 30 days.
Margaritaville can also terminate the CRS Terms of Use if the franchisee materially breaches the agreement and fails to correct the breach within sixty days after receiving written notice. Furthermore, Margaritaville can suspend access to CRS Services if the franchisee fails to pay undisputed amounts within thirty days of the invoice date, providing fifteen days' prior written notice.
These termination conditions are typical in franchise agreements, as they protect the franchisor's interests in maintaining brand standards and receiving timely payments. Prospective Camp Margaritaville franchisees should carefully review these terms to understand their obligations and the potential consequences of failing to meet them.