Who holds the security interest against the Camp Margaritaville Intellectual Property?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
The only lien or encumbrance against the Camp Margaritaville Intellectual Property is a security interest granted to HPS Investment Partners, LLC, pursuant to a security agreement dated as of June 17, 2022. Within 30 days of the signing of any Franchise Agreement, we will obtain from HPS Investment Partners, LLC, and deliver to you, a non-disturbance certificate in the form of Exhibit G to the Franchise Agreement. No other agreement significantly limits our rights to use or license the Camp Margaritaville Intellectual Property in a manner material to the franchise.
Source: Item 13 — TRADEMARKS (FDD pages 57–59)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, HPS Investment Partners, LLC, holds the security interest against the Camp Margaritaville Intellectual Property. This security interest is formalized through a security agreement dated June 17, 2022.
For a prospective Camp Margaritaville franchisee, this means that HPS Investment Partners, LLC, has a claim on the Camp Margaritaville Intellectual Property as collateral. This is a fairly common practice in franchising, where lenders take a security interest in the franchisor's assets.
Camp Margaritaville states that within 30 days of signing a Franchise Agreement, they will obtain and deliver to the franchisee a non-disturbance certificate from HPS Investment Partners, LLC, in the form of Exhibit G to the Franchise Agreement. This certificate is important because it provides assurance that the franchisee's right to use the Camp Margaritaville Intellectual Property will not be disrupted even if HPS Investment Partners, LLC, were to enforce its security interest. This clause protects the franchisee's investment and ability to operate the Camp Margaritaville franchise.