What is Camp Margaritaville franchisee required to do with Confidential Information upon expiration or termination of the Franchise Agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ort any elements of the Design Plans that are descriptive or indicative of the Camp Margaritaville System or the Camp Margaritaville Intellectual Property, including, but not limited to, repainting and removing any architectural elements that were provided by the Franchisor, its Affiliates, or the Designer, were set forth in the System Standards or Manual, or otherwise relate to the Camp Margaritaville System;
(g) changing any staff uniforms to remove all Camp Margaritaville Intellectual Property from the Resort;
(h) deleting from any computer system or POS System any Confidential Information or otherwise proprietary information, including, but not limited to recipes, menu items, inventory, and pricing;
(i) closing accounts with any suppliers or vendors opened in connection with the operation of the Resort under the Camp Margaritaville Intellectual Property, which Franchisor shall have the right to do on Franchisee's behalf if Franchisee fails to do so;
(j) immediately ceasing acceptance of and participation in any Pre-Sales, including gift cards or certificates and the like, coupons, or the Loyalty Programs associated with the Camp Margaritaville System;
(k) canceling all assumed name or equivalent registrations using or incorporating the Camp Margaritaville Intellectual Property; and,
(l) promptly notifying any applicable telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories, and listings associated with any of the Camp Margaritaville Intellectual Property.
Franchisee shall pay to Franchisor a $10,000 fee in consideration of Franchisor's oversight and approval of the De-Branding Actions. This fee is separate from, and in addition to, Franchisee's costs of the De-Branding Actions.
Section 16.02 Stop Using Related Social Media and Online Business Directories.
(a) Upon expiration or termination of this Agreement, Franchisee must immediately cease operating all social media pages within Franchisee's control associated with, or previously associated at any time with, the Resort and/or CAMP MARGARITAVILLE®, including but not limited to Facebook, Instagram, YouTube, TikTok, and X (f/k/a Twitter). Franchisee must also immediately cease operating all online business directory listings within Franchisee's control associated with, or previously associated with, the Resort and/or CAMP MARGARITAVILLE®, including but not limited to Yelp, NextDoor, LinkedIn, Google, YP (Yellow Pages), or Angi. Franchisee must promptly provide Franchisor with all login credentials or other information necessary for Franchisor to assume exclusive control over each social media and business directory account, page or listing. To the extent that Franchisee is aware of or becomes aware of any social media or business directory account, page or listing associated with the Resort that is not within Franchisee's control, Franchisee shall promptly notify Franchisor thereof in writing.
(b) Notwithstanding Section 16.02(a), Franchisor may, in its exclusive discretion, demand that Franchisee delete, deactivate or otherwise modify such social media or business directory account or listing at any time. Franchisee must comply with any such demand immediately upon receipt.
(c) Franchisee acknowledges and agrees that all consumer or other published reviews of the Resort and/or any goods or services provided by the Resort, are the exclusive property of Franchisor and/or its affiliates. Franchisee's right to use such reviews in any manner terminates concurrently with the expiration or termination of this Agreement. Franchisee is prohibited from advertising, promoting, quoting, or otherwise referring to such reviews in
connection with any business or offer to conduct business upon expiration or termination of this Agreement.
(d) Franchisee further acknowledges and agrees that any violation of this Section 16.02 constitutes trademark infringement, service mark infringement, unfair competition, false advertising, and/or deceptive trade practices pursuant to federal, state, and common law, that such violation encroaches on the goodwill associated with Franchisor's brand, and that such violation is likely to cause confusion among reasonably prudent consumers.
Section 16.03 Franchisee Fee Obligations. Upon the expiration or earlier termination of this Agreement for any reason, all accrued and unpaid Royalties and Marketing Fees due at the time of expiration or termination shall become due and payable within 30 days following the later of such expiration or termination.
Section 16.04 Technology Services.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, the franchisee faces several requirements regarding confidential information and intellectual property. All rights to use Camp Margaritaville's Intellectual Property automatically revert to the franchisor without any cost or need for documentation. The franchisee must also cease using all social media pages and online business directory listings associated with Camp Margaritaville, providing the franchisor with all necessary login credentials to assume control of these accounts.
Additionally, the franchisee is prohibited from using consumer reviews of the resort after the agreement's expiration or termination. They must also delete any confidential or proprietary information, such as recipes, menu items, inventory, and pricing, from their computer systems and POS systems. The franchisee is also responsible for notifying relevant entities about the termination of their right to use any numbers, addresses, domain names, and listings associated with Camp Margaritaville Intellectual Property.
These measures ensure that Camp Margaritaville maintains control over its brand and confidential information, preventing potential misuse or confusion after a franchise agreement ends. Franchisees should be aware of these obligations and plan accordingly to ensure a smooth transition upon the agreement's expiration or termination. Failing to comply with these requirements could lead to legal repercussions, as any violation is considered a trademark infringement.