Can Margaritaville bind the Company to any liability or obligation under the Camp Margaritaville agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
9.10 Independent Contractor. It is the express intention of Company and Margaritaville that Margaritaville performs the Services as an independent contractor to Company. Nothing in this Agreement shall in any way be construed to constitute Margaritaville as an agent, employee or representative of Company. Without limiting the generality of the forgoing, Margaritaville is not authorized to bind Company to any liability or obligation or to represent that Margaritaville has any such authority (unless otherwise provided in the Branding Agreement in Margaritaville's capacity as Franchisor or Sub-Licensor). Margaritaville agrees to furnish all tools and materials necessary to accomplish this Agreement, and shall incur all expenses associated with performance, except as expressly provided in a Statement of Work. Margaritaville shall determine the method, details, and means of performing the Services in accordance with each Statement of Work. Nothing in this Agreement or any Statement of Work shall be construed to interfere with or otherwise affect the rendering of Services by Margaritaville in accordance with Margaritaville's independent and professional judgment. Margaritaville shall perform the Services in accordance with all requirements of applicable law and substantially in accordance with generally accepted practices and principles of Margaritaville's trade.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, Margaritaville's role is defined as an independent contractor to the Company. The agreement explicitly states that nothing within it should be interpreted as establishing Margaritaville as an agent, employee, or representative of the Company.
Specifically, Margaritaville is not authorized to create any liability or obligation on behalf of the Company. This means that Camp Margaritaville franchisees should understand that Margaritaville's actions and services are provided as an independent entity, and it cannot legally bind the Company to any agreements or responsibilities unless explicitly stated otherwise in a Branding Agreement where Margaritaville acts as the Franchisor or Sub-Licensor.
This delineation of roles is a common practice in franchising to protect the Company from liabilities arising from the actions of its contractors. It ensures that the Company maintains control over its obligations and responsibilities, while Margaritaville operates independently within the scope of their agreed-upon services.