In the Camp Margaritaville Franchise Agreement, is the jury trial waiver provision removed?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 17.07 Waiver of Punitive Damages and Jury Trial. EXCEPT FOR THE INDEMNIFICATION OBLIGATIONS FOR THIRD-PARTY CLAIMS UNDER ARTICLE X, FRANCHISOR AND FRANCHISEE (AND FRANCHISEE'S OWNERS) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM FOR ANY PUNITIVE, EXEMPLARY, AND TREBLE AND OTHER FORMS OF MULTIPLE DAMAGES AGAINST THE OTHER AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN FRANCHISOR AND FRANCHISEE (AND/OR FRANCHISEE'S OWNERS), THE PARTY MAKING A CLAIM WILL BE LIMITED TO EQUITABLE RELIEF AND TO RECOVERY OF ANY ACTUAL DAMAGES (INCLUDING LIQUIDATED DAMAGES) IT SUSTAINS.
FRANCHISOR AND FRANCHISEE (AND FRANCHISEE'S OWNERS) IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER FRANCHISOR OR FRANCHISEE (OR ITS OWNERS).
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, the franchise agreement contains a waiver of the right to a jury trial. Specifically, both Camp Margaritaville and the franchisee (including the franchisee's owners) irrevocably waive their right to a jury trial for any legal action, proceeding, or counterclaim, whether based in law or equity. This waiver applies to actions brought by either the franchisor or the franchisee.
This means that any disputes arising between Camp Margaritaville and a franchisee will be resolved by a judge rather than a jury. This can have significant implications for franchisees, as jury trials are often perceived to be more favorable to the average person, while judges may be seen as more sympathetic to corporate interests. By agreeing to this waiver, franchisees give up the right to have their case decided by a jury of their peers.
It is important for prospective Camp Margaritaville franchisees to carefully consider the implications of this jury trial waiver before signing the franchise agreement. Franchisees should consult with an attorney to fully understand their rights and options. While jury trial waivers are relatively common in franchise agreements, franchisees should be aware of the potential impact on their ability to resolve disputes with the franchisor.