What happens to the Camp Margaritaville agreement if the Branding Agreement is terminated?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 8.02 License. Franchisee's right to use the Camp Margaritaville Intellectual Property and Confidential Information is derived only from this Agreement and is limited to the development and operation of the Resort at the Site during the Term. Franchisee acknowledges that, as between it and Franchisor, Franchisor is the owner of all rights in the Camp Margaritaville Intellectual Property and the associated goodwill. Franchisee agrees that its use of the Camp Margaritaville Intellectual Property shall inure to the benefit of Franchisor, Licensor, or any such other Franchisor Affiliate as Franchisor may designate in writing. Upon expiration or termination of this Agreement for any reason, all of Franchisee's
rights to use the Camp Margaritaville Intellectual Property will automatically revert to Franchisor without cost and without execution or delivery of any document.
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. Upon expiration or termination of this Agreement, Franchisee must cease use of the CRS, or any other technology connected to the Camp Margaritaville System, including, but not limited to the CRM System, PMS, POS System, employee performance platform and CMS. Franchisee, however, shall remain obligated to any third parties for payments due and owing under any separate agreement for services that they may have with such third-party vendors.
- 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.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, the franchisee's right to use Camp Margaritaville's intellectual property is derived from the franchise agreement. Upon the termination or expiration of the agreement, all rights to use Camp Margaritaville's intellectual property automatically revert back to the franchisor. This reversion happens without any cost to the franchisor and without needing any additional documents to be signed or delivered.
Camp Margaritaville franchisees must also stop using the Camp Margaritaville System, including any technology connected to it such as the CRS, CRM System, PMS, POS System, employee performance platform, and CMS. However, the franchisee remains responsible for payments owed to third parties under any separate agreements they have for services with those vendors.
Additionally, the franchisee is obligated to pay all accrued and unpaid royalties and marketing fees within 30 days of the termination or expiration date. Franchisees are prohibited from using any confusingly similar intellectual property in connection with any business or offer to conduct business after the agreement terminates. Violating this section constitutes trademark infringement, unfair competition, and deceptive trade practices, which could cause confusion among consumers and harm the goodwill associated with the Camp Margaritaville brand.