If the Company terminates the agreement with Camp Margaritaville, what payment obligations does the Company have?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3 Termination of Marketing Provider Agreement. In the event that the Marketing Provider Agreement terminates for any reason, Margaritaville shall have the option, in its sole discretion, to terminate this Agreement upon the lesser of: (a) 30 days prior written notice; or (b) the termination period provided under the Marketing Provider Agreement.
8. Effect of Termination.
- 8.2 Upon termination of this Agreement or an existing Statement of Work, Company shall pay Margaritaville for all Services rendered and expenses incurred by Margaritaville in accordance with this Agreement or the existing Statement of Work prior to the date of termination.
- 8.1 Upon completion, termination, or expiration of this Agreement or an existing Statement of Work, Margaritaville will cease providing Services and delivertoCompany all copies of any deliverables (as defined in each Statement of Work) in their then current form or state, whether complete or incomplete. All deliverables provided in accordance with this provision that have not been completed in accordance with the applicable Statement of Work are provided "AS IS" with no warranty of any kind. Company will pay for such deliverables in accordance with the applicable Statement of Work.
- 8.3 Survival. Section 6 (Confidentiality) and Section 9 (Miscellaneous) shall survive termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, if the Marketing Provider Agreement is terminated for any reason, Margaritaville has the option to terminate the agreement with the Company. This termination can occur with either 30 days' written notice or the termination period provided under the Marketing Provider Agreement, whichever is shorter.
Upon termination of the agreement or any existing Statement of Work, the Company is obligated to compensate Margaritaville for all services rendered and expenses incurred up to the termination date, as specified in the agreement or the relevant Statement of Work. Margaritaville will stop providing services and deliver to the Company all copies of any deliverables in their current state, whether complete or incomplete. The Company is required to pay for these deliverables as outlined in the applicable Statement of Work, and these deliverables are provided "AS IS" without any warranty.
It's important to note that certain sections of the agreement, such as those concerning confidentiality and miscellaneous provisions, will remain in effect even after the termination of the agreement. This ensures that both parties continue to adhere to specific obligations, such as maintaining confidentiality, even after the business relationship has ended.