What aspects of Camp Margaritaville does management believe will not be materially affected by the ultimate liability from legal proceedings, claims, and liabilities?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ut limitation, penalties, interest, additions to tax and similar amounts), whether federal, state, local, foreign or
otherwise, which are related to the Services, other than taxes imposed on the net income of Margaritaville (collectively, "Taxes"). Customer shall: (i) ensure that the Platform is configured to collect the applicable sales taxes at all times; (ii) communicate the amount of the Taxes to Margaritaville (for which Margaritaville will reimburse Customer); and (iii) remit the Taxes to the applicable governmental authorities. All payments due to Margaritaville under these Terms of Use shall be made free and clear of any Taxes. If Customer is required by law to make any deduction or withholding of Taxes from any payment due to Margaritaville under these Terms of Use, Customer shall (i) timely and properly p
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
Based on the 2025 Camp Margaritaville Franchise Disclosure Document, Section 17 outlines limitations of liability between the parties. It states that neither party is liable for special, indirect, punitive, or consequential damages, including loss of profits, revenue, or savings, regardless of the cause of action, even if advised of the possibility of such damages. This suggests that Camp Margaritaville aims to limit exposure to speculative or amplified damage claims.
Furthermore, the liability of either party, except for early termination fees or privacy-related claims, is capped at the greater of the amount paid to Margaritaville under the Terms of Use during the 12 months preceding the claim or US $50,000. This provision provides a concrete limit on potential financial exposure for most types of claims. The document also specifies a claim cannot be brought more than 36 months after a party knew or reasonably should have known about it.
These limitations and conditions suggest that Camp Margaritaville seeks to protect itself and its franchisees from excessive or prolonged liability related to the franchise agreement, outside of specific instances like early termination or privacy breaches. Prospective franchisees should understand these limitations, as they define the scope of potential financial recovery in case of disputes or damages.