Does Buffett represent and warrant that he has the authority to execute and deliver the Camp Margaritaville agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
5.1 Buffett. Buffett represents and warrants that:
- (a) he has the requisite capacity and authority to execute, deliver and perform this Agreement;
- (b) This Agreement has been duly authorized, executed and delivered by Buffett and is a legal, valid and binding obligation of Buffett, enforceable against Buffett by Margaritaville according to its terms, except:
- (i) as enforcement may be limited by bankruptcy, insolvency and similar laws affecting the rights of creditors generally; and
- (ii) that equitable remedies may be granted only in the discretion of a court of competent jurisdiction;
- (c) Buffett's execution, delivery and performance of this Agreement shall not, directly or indirectly (with or without notice or lapse of time):
- (i) contravene, conflict with or result in a violation of any law applicable to Buffett;
- (ii) contravene, conflict with or result in a violation of, or give any governmental authority or other person or entity the right to challenge any of the transactions contemplated by this Agreement, or to exercise any remedy or obtain any relief under, any applicable law; or
- (iii) contravene, conflict with or result in a violation or breach of any provision of, or give any person or entity the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify, any contract to which Buffett is a party
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Jimmy Buffett ('Buffett') does indeed represent and warrant that he possesses the necessary capacity and authority to execute, deliver, and perform the agreement. This means Buffett assures that he is legally able to enter into the agreement and fulfill his obligations as outlined within it.
Specifically, Buffett warrants that the agreement has been properly authorized, executed, and delivered by him, making it a legal, valid, and binding obligation enforceable against him by Margaritaville, subject to standard limitations such as bankruptcy laws and the discretion of the court regarding equitable remedies. This provides assurance to Margaritaville that the agreement is legitimate and that Buffett is committed to upholding his responsibilities.
Furthermore, Buffett represents that his execution, delivery, and performance of the agreement will not violate any laws applicable to him or conflict with any existing agreements. This protects Margaritaville from potential legal challenges or breaches of contract arising from Buffett's involvement in the agreement. This representation is crucial for ensuring the stability and enforceability of the agreement, giving Camp Margaritaville franchisees confidence in the partnership.