What does 'Buffett IP Rights' include for a Camp Margaritaville franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
he Camp Margaritaville Intellectual Property are approved, any such approved components shall be addressed pursuant to a separate agreement or mutually agreed addendum to this Agreement.
- (b) Non-Branded Components. The Parties agree that the Resort may contain components that do not contain or compete with the Camp Margaritaville Intellectual Property, subject to Franchisor's approval in its sole discretion.
Section 8.04 Restrictions on Buffett IP Rights. The rights granted pursuant to this Agreement expressly exclude the right to use the Non-Buffett Works. To the extent that Buffett has the legal right to do so, Buffett has granted to Licensor (pursuant to the Buffett Agreement), and Licensor has sub-licensed to Franchisor (pursuant to the License Agreement), the right to further sub-license to Franchisee, a nonexclusive license to exploit the Non-Buffett Works in connection with this Agreement, subject to Section 8.05 hereof.
Section 8.05 Music Clearances. Notwithstanding the foregoing or anything to the contrary in this Agreement or in the Buffett Agreement, for Franchisee's use of any music in, at or in connection with the Resort, Franchisee shall obtain (i) a SiriusXM Radio commercial rights license to play Radio Margaritaville and other theme-appropriate channels and/or a subscription to an audiovisual vendor approved by Franchisor, and (ii) for other music, such other licenses as required by applicable music publishers, record companies, unions, guilds, collecting societies and performing rights organizations (e.g., ASCAP, BMI and SESAC); and pay all applicable third-party license fees, royalties and other costs due in connection therewith.
Section 8.06 Franchisee's Obligations as to the Camp Margaritaville Intellectual Property.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, Margaritaville Enterprises, LLC owns the Margaritaville Enterprises IP Rights and is licensed by Jimmy Buffett to use and sublicense the Buffett IP Rights. The franchisor, in turn, sublicenses both the Buffett IP Rights and the Margaritaville Enterprises IP Rights to the franchisee. The rights granted to the franchisee exclude the right to use the Non-Buffett Works.
Specifically, Buffett has granted to the Licensor the right to sublicense to the franchisee a nonexclusive license to exploit the Non-Buffett Works, to the extent that Buffett has the legal right to do so. Non-Buffett Works include musical compositions recorded by Jimmy Buffett for which he does not own 100% of the publishing rights, as well as other works of authorship not fully owned and controlled by Buffett.
The franchisee is required to obtain a SiriusXM Radio commercial rights license to play Radio Margaritaville and other theme-appropriate channels, or a subscription to an approved audiovisual vendor. Additionally, the franchisee must secure licenses from music publishers, record companies, unions, guilds, collecting societies, and performing rights organizations (such as ASCAP, BMI, and SESAC) for any other music used at the Resort and pay all associated fees.