In connection with commencing a Camp Margaritaville franchise relationship, can a franchisee waive claims under applicable state franchise law, including fraud in the inducement, through any signed statement, questionnaire, or acknowledgement?

According to the 2025 Camp Margaritaville Franchise Disclosure Document, a franchisee cannot waive claims under applicable state franchise law, including fraud in the inducement, through any signed statement, questionnaire, or acknowledgement related to commencing the franchise relationship. This protection is highlighted in Item 23, Receipts, within the FDD. This provision overrides any conflicting terms in any document executed as part of the franchise agreement.

This safeguard ensures that franchisees retain their legal rights and recourse against Camp Margaritaville, even if they have signed documents that appear to waive those rights. This is particularly important in cases of fraud, where a franchisee might have been misled into entering the agreement. The explicit mention of 'fraud in the inducement' underscores the franchisor's awareness of this potential issue and their commitment to preventing it.

Several state-specific addenda reinforce this protection by stating that certain provisions within the franchise agreement do not supersede franchisee rights under state laws. For example, the addenda for Maryland, Rhode Island, South Dakota, Minnesota, New York, Illinois, California, and Hawaii each contain clauses that either prevent the waiver of rights under state franchise laws or specify that certain terms do not override those rights. These addenda reflect the varying legal landscapes across different states and ensure that Camp Margaritaville franchisees are afforded the full protection of their local franchise laws.