What must a Camp Margaritaville franchisee do if there is an apparent infringement or challenge to the Licensed Marks?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Licensed Mark, or of any person's claim of any rights in any Licensed Mark, and not communicate with any person other than us, our affiliates, and our and their attorneys, and your attorneys, regarding any infringement, challenge, or claim. We and our affiliates may take the action we and they deem appropriate (including no action) and control exclusively any litigation, PTO proceeding, or other proceeding arising from any infringement, challenge, or claim or otherwise concerning any Licensed Mark. You must sign any documents and take any other reasonable actions that, in the opinion of our and our affiliates' attorneys, are necessary or advisable to protect and maintain our and our affiliates' interests in any litigation or PTO or other proceeding or otherwise to protect and maintain our and our affiliates' interests in the Licensed Marks. We will reimburse your reasonable out-of-pocket costs for taking any requested action.
Source: Item 13 — TRADEMARKS (FDD pages 57–59)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee must immediately notify Camp Margaritaville of any apparent infringement or challenge to the use of any Licensed Mark, or of any person's claim of any rights in any Licensed Mark. The franchisee is instructed not to communicate with any person other than Camp Margaritaville, its affiliates, their attorneys, and the franchisee's attorneys regarding any infringement, challenge, or claim. This ensures that Camp Margaritaville maintains control over the legal strategy and response.
Camp Margaritaville and its affiliates have the right to take any action they deem appropriate, including no action, and will exclusively control any litigation, PTO proceeding, or other proceeding arising from any infringement, challenge, or claim concerning any Licensed Mark. The franchisee is required to sign any documents and take any other reasonable actions that Camp Margaritaville's attorneys consider necessary to protect the interests in any litigation or PTO proceeding related to the Licensed Marks.
Camp Margaritaville will reimburse the franchisee's reasonable out-of-pocket costs for taking any requested action. This protects the franchisee from incurring expenses when assisting Camp Margaritaville in protecting its trademarks. This is a fairly standard practice in franchising, as the franchisor typically owns the trademarks and is responsible for their defense, but the franchisee's cooperation may be required in certain situations.