What written notice of intent is required to renew a Camp Margaritaville franchise, and when must it be provided?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. F |
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 seeking to renew their franchise agreement must provide written notice of intent to renew 12-18 months prior to the expiration of the current franchise term. This notification is a prerequisite for renewal, allowing Camp Margaritaville to assess the franchisee's eligibility and plan for the future of the location.
In addition to providing timely written notice, the franchisee must meet several other conditions to qualify for renewal. These conditions include not being in default of the franchise agreement, still having ownership of the site, and agreeing to remodel the location to Camp Margaritaville's then-current standards. The franchisee will also be required to execute the then-current form of franchise agreement and a release of claims against Camp Margaritaville and its affiliates.
Furthermore, the franchisee must pay a $50,000 renewal fee to Camp Margaritaville. Meeting all these requirements does not guarantee renewal on the same terms as the original agreement, as Camp Margaritaville may present a new contract with materially different terms and conditions. This is a fairly standard practice in franchising, as brands evolve and update their agreements over time.
Prospective franchisees should be aware of these renewal conditions and factor them into their long-term business planning. The cost of remodeling, the potential for different contract terms, and the $50,000 renewal fee could significantly impact the profitability and viability of the franchise as it approaches the end of its initial term. It is important to discuss these factors with existing franchisees and carefully review the renewal terms in the Franchise Agreement before investing in a Camp Margaritaville franchise.