Where will the binding arbitration take place for Camp Margaritaville disputes?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Dispute Resolution. If there is a disagreement regarding any aspect of this Agreement, Margaritaville and Company agree to resolve it as follows:
- (a) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida.
- (b) Remedies. Because money damages shall not be a sufficient remedy for a breach of this Agreement by Receiving Party or its Representatives, Disclosing Party shall be entitled to specific performance and injunctive relief as remedies for any such breach or threatened breach. Such remedies shall not be deemed to be the exclusive remedies for a breach of this Agreement by Receiving Party or any of its Representatives but shall be in addition to all other remedies available to Disclosing Party at law or in equity.
- (c) Venue. The location of all dispute resolutions procedures shall be in Orlando, Florida, at a specific location to be selected by the single arbitrator or the multiple arbitrators as the case may be.
- (d) Process. All issues shall be resolved by using the then-existing commercial arbitration rules of the American Arbitration Association, except that, regardless of the rules, there shall be three (3) arbitrators unless the Parties agree in writing to use a single arbitrator.
(e) Awards.
All arbitration awards shall be enforceable by any court that has jurisdiction over the Party against whom enforcement is sought.
The Parties hereby agree to submit voluntarily to the jurisdiction of state and federal courts in Orlando, Florida that are willing to exercise jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the location for all dispute resolution procedures, including binding arbitration, will be in Orlando, Florida. The specific location within Orlando will be determined by the arbitrator or arbitrators assigned to the case. This applies to any disagreement regarding any aspect of the Franchise Agreement.
This means that if a Camp Margaritaville franchisee has a dispute with the franchisor that cannot be resolved through other means, the arbitration proceedings will take place in Orlando, Florida, regardless of where the franchisee's Camp Margaritaville location is situated. This could involve travel and associated expenses for the franchisee to attend the arbitration hearings.
Camp Margaritaville also specifies that all issues shall be resolved using the then-existing commercial arbitration rules of the American Arbitration Association (AAA). Unless both parties agree in writing to use a single arbitrator, there will be three arbitrators. The arbitration awards are legally binding and can be enforced by any court with jurisdiction over the party against whom enforcement is sought. Franchisees also agree to submit to the jurisdiction of state and federal courts in Orlando, Florida.
It is important for prospective Camp Margaritaville franchisees to understand this clause, as it dictates the location and process for resolving disputes. Franchisees should factor in the potential costs and logistical challenges of participating in arbitration in Orlando, Florida, when evaluating the franchise opportunity.