Besides the franchisee, who else may be required to grant a release and covenant not to sue to Camp Margaritaville?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, in addition to the franchisee, the franchisor is entitled to a release and covenant not to sue from the franchisee's owners. This means that the owners must also agree to release Camp Margaritaville from any claims and agree not to sue them. By signing separately, the owners grant Camp Margaritaville the release and covenant not to sue.

This requirement ensures that Camp Margaritaville is protected from potential legal action not only from the franchisee but also from those who have an ownership stake in the franchise. This is a fairly standard practice in franchising, as it prevents related parties from circumventing the release by filing separate lawsuits. The release covers a broad range of claims, both known and unknown, that the franchisee or their owners may have against Camp Margaritaville.

For prospective Camp Margaritaville franchisees, this means that if you have owners involved in your franchise, they too will need to sign a release and covenant not to sue. This is something to consider when structuring your franchise ownership and discussing the legal implications with all parties involved. It is important to fully understand the scope of the release and covenant not to sue before signing, as it can have significant legal consequences.