Does a Camp Margaritaville franchisee's indemnification obligation extend to liabilities caused by the franchisor's negligence?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
solved on an individual basis only and not a classwide, multiple plaintiff or similar basis. No legal proceeding arising out of or relating to this Agreement, or the Camp Margaritaville System may be brought on behalf of any franchisee associations or groups, and Franchisee agrees not to participate in any such proceeding. Any such proceeding shall not be consolidated with any other proceeding involving any other Person, except for disputes involving Affiliates of the Parties to such legal proceeding.
Section 17.07 Waiver of Punitive Damages and Jury Trial. EXCEP
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
Based on the 2025 Camp Margaritaville Franchise Disclosure Document, the provided excerpts do not specify whether a franchisee's indemnification obligations extend to liabilities caused by the franchisor's negligence. The FDD does mention the franchisee's indemnification obligations under Article X of the Franchise Agreement. However, the document does not explicitly state whether this extends to the franchisor's own negligence.
Item 23 generally discusses receipts and includes sections on liquidated damages, pre-opening obligations, and events of default, but it does not detail the specifics of the indemnification obligations or their exceptions. The FDD also includes a section where both parties waive punitive damages for disputes, except for indemnification obligations for third-party claims under Article X.
A prospective Camp Margaritaville franchisee should carefully review Article X of the Franchise Agreement and seek legal counsel to fully understand the scope of their indemnification obligations. It is important to clarify whether these obligations extend to situations where the franchisor's negligence contributes to the liability. Understanding this aspect is crucial for assessing the potential financial risks associated with the franchise.