What is the Camp Margaritaville Franchisor obligated to do regarding the franchisee's use of trademarks in Minnesota?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisor obtain intellectual property rights in the Innovation. Franchisor and its affiliates have no obligation to make any payments to Franchisee or any other person with respect to any Innovations. Franchisee may not use any Innovation in operating the Resort or otherwise without Franchisor's prior approval.
Section 8.10 Registration and Maintenance of Camp Margaritaville Intellectual Property. Franchisor shall obtain at its sole cost and expense and in Licensor's or Franchisor's own name or the name of an Affiliate, appropriate copyright, and trademark protection for the Camp Margaritaville Intellectual Property throughout the United States. Franchisee shall cooperate with Franchisor and its Affiliates in protecting the Camp Margaritaville Intellectual Property. For that purpose, Franchisee shall supply to Franchisor from time to time samples, containers, labels and similar material, and information regarding the goods or services offered under this Agreement, as may be commercially reasonably required. Franchisee also shall execute and deliver to Franchisor, at any time, whether during or after the Term of this Agreement and without further consideration, such instruments of transfer and other documents as Franchisor may prepare and commercially reasonably request in order to confirm Franchisor's or such other Franchisor Affiliate's copyright or trademark ownership rights.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, the franchisor is obligated to obtain and maintain appropriate copyright and trademark protection for the Camp Margaritaville Intellectual Property throughout the United States, including Minnesota. This is to be done at the franchisor's sole cost and expense, using their name or the name of an affiliate. The franchisor also needs to take commercially reasonable steps to maintain any registrations of sub-licensed marks during the term of the agreement, provided it is legally feasible.
To aid in protecting the Camp Margaritaville Intellectual Property, franchisees must supply samples, containers, labels, and similar materials, along with information about the goods or services offered. Franchisees must also execute and deliver any documents the franchisor requests to confirm copyright or trademark ownership rights.
In the event of infringement or misappropriation of Camp Margaritaville Intellectual Property, both parties are required to promptly notify each other in writing. The franchisor has the first opportunity to defend against or settle any proceedings related to the intellectual property. However, if the infringement could materially and adversely impact the franchisee's resort and the franchisor fails to take action within a specified timeframe (30 days of notice, or 5 days if injunctive relief is entered), the franchisee may initiate proceedings at the franchisor's expense.