What are "Buffett IP Rights" as they pertain to the Camp Margaritaville franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Jimmy Buffett, along with his entity, Coral Reefer Music and all other entities majority owned and controlled by Jimmy Buffett, granted an exclusive right to use and sublicense, in connection with hospitality and other businesses, any of his compositions, current and future photographic works, books, articles, films, videos and other audio-visual works, artwork, drawings, recipes, and other works of authorship solely owned and controlled by Jimmy Buffett ("Buffett Works") along with the non-exclusive rights to use his personality, including his name, image, likeness, signature, photograph, gestures, distinctive appearances, and mannerisms ("Buffett Personality Rights") (collectively "Buffett IP Rights") to Margaritaville Enterprises, pursuant to a license agreement dated February 27, 2014. Jimmy Buffett's rights and
obligations under the license agreement have been assumed by The James W. Buffett 1990 Trust (as amended) (the "Trust"). Margaritaville Enterprises then sublicensed the use of the Buffett IP Rights to Camp Margaritaville Resorts for the purposes of creating, operating, and franchising the Camp Margaritaville System and other related purposes pursuant to a sublicense agreement dated January 14, 2019. Jimmy Buffett did not (and the Trust does not) receive any compensation in connection with his consent to use his personality rights and music material in this manner, other than royalties ordinarily paid to music publishers, record companies, book publishers and their respective contributors (e.g., songwriters, recording artists, authors) for the exploitation of audio recordings, video recordings, audiovisual recordings and books that may be made in connection with the branded RV resorts. Additionally, the Trust is an owner of Margaritaville Holdings LLC, the parent company of Margaritaville Enterprises. As such, the Trust may receive an indirect financial benefit from fees paid by franchisees to us. Neither Jimmy Buffett nor the Trust has not made any direct investment in us.
Source: Item 18 — PUBLIC FIGURES (FDD pages 68–69)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, "Buffett IP Rights" encompass the exclusive right to use and sublicense various works of Jimmy Buffett in connection with hospitality and other businesses. These rights include any of his compositions, current and future photographic works, books, articles, films, videos and other audio-visual works, artwork, drawings, recipes, and other works of authorship solely owned and controlled by Jimmy Buffett, along with the non-exclusive rights to use his personality, including his name, image, likeness, signature, photograph, gestures, distinctive appearances, and mannerisms. These rights were initially granted to Margaritaville Enterprises under a license agreement dated February 27, 2014, and subsequently sublicensed to Camp Margaritaville Resorts for creating, operating, and franchising the Camp Margaritaville system.
For a Camp Margaritaville franchisee, this means they are granted the right to utilize Jimmy Buffett's works and personality rights within their resort. This includes using his music, images, and other creative works to enhance the Camp Margaritaville experience. However, franchisees must also adhere to certain restrictions and obligations related to these rights. For example, franchisees are required to obtain necessary licenses for music played at the resort, such as a SiriusXM Radio commercial rights license for Radio Margaritaville and licenses from applicable music publishers and performing rights organizations for other music. They are also responsible for paying all applicable third-party license fees and royalties.
The Trust that assumed Jimmy Buffett's rights and obligations under the license agreement is also an owner of Margaritaville Holdings LLC, the parent company of Margaritaville Enterprises. This means that the Trust may receive an indirect financial benefit from fees paid by franchisees to Camp Margaritaville. However, neither Jimmy Buffett nor the Trust has made any direct investment in the franchise. The agreement also specifies that franchisees cannot use "Non-Buffett Works" without obtaining the appropriate licenses, and Camp Margaritaville has the right to further sublicense these works to franchisees under certain conditions.