What dispute resolution procedures must be followed for disputes arising under the Camp Margaritaville agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ated damages described in Section 16.05(a) if: (a) this Agreement is terminated as a result of Franchisee's willful default, including its failure to operate the Resort according to this Agreement; or (b) this Agreement is terminated as a result of a Transfer to a Competing Brand.
Section 16.07 Survival. Every provision that expressly or by its nature is necessary to allow the Parties to fulfill their rights and obligations shall survive this Agreement.
ARTICLE XVII. DISPUTE RESOLUTION
Section 17.01 Notice and Opportunity to Cure. As a mandatory condition precedent prior to Franchisee taking any legal or other action against Franchisor, whether for damages, injunctive, equitable or other relief (including, but not limited to, rescission), Franchisee shall first give Franchisor 90 days' prior written notice and opportunity to cure any alleged act or omission, or to resolve any dispute.
Section 17.02 Mediation. The Parties agree that prior to instituting any legal proceeding, they shall attempt to settle the dispute by mediation before resorting to another dispute resolution procedure. The foregoing mandatory mediation requirement shall not apply to (i) any controversy or claim relating to ownership or use of the Camp Margaritaville Intellectual Property or Confidential Information; or (ii) any claim for an injunction or other equitable relief; or (iii) any claim by the Franchisor for unpaid Royalties or other unpaid amounts owed to Franchisor. The mediation shall be with a mutually agreeable JAMS mediator ("Mediator") and shall take place at the JAMS office in Atlanta, Georgia. In order to commence the mediation process, the Party seeking mediation must send a written demand for mediation to the other Party which sufficiently sets forth the issues to be mediated.
Section 17.03 Arbitration. If the Parties are not able to appoint a Mediator or, if they have appointed one, fail to reach a mutual agreement based on the steps set forth in Section 17.02, within fifteen (15) days following the Parties' failure to appoint a mediator or failure to reach a mutual mediation agreement, then any Party may then submit the dispute for binding arbitration to the JAMS office in Atlanta, Georgia. The rules of JAMS shall, except as set forth below, be utilized in resolving the dispute:
- (a) each Party shall select one independent and impartial arbitrator from the JAMS panel in the Atlanta, Georgia metropolitan area. Within ten (10) days of the date upon which the last of those two (2) arbitrators is selected, the two (2) arbitrators shall select a third arbitrator by mutual agreement from the JAMS panel in the Atlanta, Georgia metropolitan area;
- (b) if the third arbitrator cannot be selected in the manner described in subsection (a), above, then each Party shall submit to the senior administrator of JAMS in Atlanta, Georgia the name of one (1) additional arbitrator, and he or she, using sole discretion, shall select one of those two (2) proposed arbitrators as the third arbitrator, who shall be the Chairperson;
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, franchisees must follow specific procedures to resolve disputes with the franchisor. Before taking any legal action against Camp Margaritaville, a franchisee must provide written notice of the issue and allow 90 days for Camp Margaritaville to address or resolve the concern.
Prior to initiating any legal proceedings, both parties are obligated to attempt to resolve the dispute through mediation. This mediation should occur before resorting to other dispute resolution methods. The mediation will be conducted with a mutually agreed upon JAMS mediator at the JAMS office located in Atlanta, Georgia. To begin the mediation, the party seeking mediation must provide a written demand to the other party that clearly outlines the issues to be mediated. However, the mandatory mediation requirement does not apply to controversies or claims relating to ownership or use of the Camp Margaritaville Intellectual Property or Confidential Information, claims for injunctions or other equitable relief, or claims by the franchisor for unpaid royalties or other unpaid amounts owed to the franchisor.
Any disputes or legal proceedings related to the franchise agreement must be conducted on an individual basis, and franchisees waive the right to participate in class action lawsuits or proceedings involving franchisee associations or groups. Franchisees also waive any right to claim punitive, exemplary, or treble damages against Camp Margaritaville, limiting their recovery to actual damages or equitable relief. Both Camp Margaritaville and the franchisee irrevocably waive their rights to a jury trial in any action, proceeding, or counterclaim related to the franchise agreement.