What is the deadline for obtaining a non-disturbance certificate from HPS Investment Partners, LLC for a Camp Margaritaville franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
The only lien or encumbrance against the Camp Margaritaville Intellectual Property is a security interest granted to HPS Investment Partners, LLC, pursuant to a security agreement dated as of June 17, 2022. Within 30 days of the signing of any Franchise Agreement, we will obtain from HPS Investment Partners, LLC, and deliver to you, a non-disturbance certificate in the form of Exhibit G to the Franchise Agreement. No other agreement significantly limits our rights to use or license the Camp Margaritaville Intellectual Property in a manner material to the franchise.
Source: Item 13 — TRADEMARKS (FDD pages 57–59)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the franchisor must obtain a non-disturbance certificate from HPS Investment Partners, LLC and deliver it to the franchisee within 30 days of the signing of the Franchise Agreement. This certificate is in the form of Exhibit G to the Franchise Agreement.
The purpose of this certificate is to protect the franchisee's rights to use the Camp Margaritaville Intellectual Property, despite the existing security interest held by HPS Investment Partners, LLC. This security interest was granted via a security agreement dated June 17, 2022.
This requirement ensures that the franchisee can operate their Camp Margaritaville location without undue interference from the lender, HPS Investment Partners, LLC. It is a crucial step in securing the franchisee's investment and operational rights under the Franchise Agreement. The franchisee should confirm receipt of this certificate within the specified timeframe to ensure compliance and protection of their interests.