In the event that Camp Margaritaville seeks injunctive relief, who determines if a bond is required?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 17.04 Equitable Relief. Notwithstanding anything to the contrary herein, Franchisor is entitled to injunctive or other equitable relief, including restraining orders and preliminary injunctions, in any court of competent jurisdiction for any threatened or actual material breach this Agreements or non-compliance with the Margaritaville Standards. In such event, Franchisee hereby consents to jurisdiction and venue in the state or federal court where Franchisor's headquarters are located at the time of filing (currently, Orlando, Florida) and Franchisee waives all objections to venue, including objections based on forum non conveniens**.** Franchisor is entitled to such relief without the necessity of proving the inadequacy of money damages as a remedy, without the necessity of posting a bond and without waiving any other rights or remedies.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, in the event that Camp Margaritaville seeks injunctive or other equitable relief, the brand is entitled to such relief without the necessity of posting a bond. This means that if Camp Margaritaville pursues legal action against a franchisee for a breach of the franchise agreement or non-compliance with brand standards, the court can grant an order without Camp Margaritaville having to provide a financial guarantee (bond) that would cover the franchisee's potential losses if the injunction was later found to be unjustified.
This condition favors Camp Margaritaville, as it lowers the bar for obtaining injunctive relief. Typically, a party seeking an injunction must post a bond to protect the other party from damages if the injunction is wrongly issued. The franchisee consents to jurisdiction and venue in the state or federal court where Camp Margaritaville's headquarters are located at the time of filing (currently, Orlando, Florida) and waives all objections to venue, including objections based on forum non conveniens.
For a prospective franchisee, this means that if Camp Margaritaville believes the franchisee is in material breach of the agreement, Camp Margaritaville can more easily obtain a court order forcing the franchisee to take (or stop taking) certain actions. The franchisee would have little recourse to recover losses incurred while complying with the order, even if the order is later overturned. This clause underscores the importance of adhering to the franchise agreement and maintaining Margaritaville Standards to avoid potential legal action.