factual

How are the costs of the Mediator shared between the parties in a Camp Margaritaville dispute?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (iii) The Mediator shall be selected by mutual agreement of the Parties. The costs of the Mediator shall be shared equally between the Parties to the particular dispute. The mediation shall take place in Palm Beach, Florida.

Source: Item 23 — RECEIPTS (FDD pages 72–406)

What This Means (2025 FDD)

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the costs of the Mediator are shared equally between the parties involved in the dispute. This applies when the parties agree to resolve disputes through discussion and mediation, without resorting to arbitration or litigation, whenever reasonably possible.

Prior to initiating any arbitration or litigation, the parties must first attempt to resolve the dispute through discussions between authorized representatives, such as Buffett (or his Estate) and Margaritaville's Chief Executive Officer (or equivalent). These discussions must occur within five business days of either party's request and last for a minimum of one hour before mediation or arbitration can be pursued.

If the dispute remains unresolved after these discussions, either party may then invoke mandatory mediation using an independent mediator under the jurisdiction of the American Arbitration Association (AAA). The Mediator is selected by mutual agreement of the parties, and the mediation takes place in Palm Beach, Florida. This arrangement ensures that both Camp Margaritaville and the franchisee share the financial burden of the mediation process equally, promoting a balanced approach to dispute resolution.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.