What is the maximum liability of MVE to a Camp Margaritaville customer arising out of or in connection with the agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ut limitation, penalties, interest, additions to tax and similar amounts), whether federal, state, local, foreign or
otherwise, which are related to the Services, other than taxes imposed on the net income of Margaritaville (collectively, "Taxes"). Customer shall: (i) ensure that the Platform is configured to collect the applicable sales taxes at all times; (ii) communicate the amount of the Taxes to Margaritaville (for which Margaritaville will reimburse Customer); and (iii) remit the Taxes to the applicable governmental authorities. All payments due to Margaritaville under these Terms of Use shall be made free and clear of any Taxes. If Customer is required by law to make any deduction or withholding of Taxes from any payment due to Margaritaville under these Terms of Use, Customer shall (i) timely and properly p
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, Margaritaville's maximum liability to a customer is capped under the Terms of Use agreement. Except for specific liabilities of the customer related to early termination or claims arising from privacy issues, Margaritaville's liability for any reason will not exceed the greater of two amounts. These amounts are either the total amount paid to Margaritaville under the Terms of Use during the 12 months before the claim occurred, or US $50,000.
This limitation of liability means that a Camp Margaritaville customer's potential recovery from Margaritaville for any claim is capped at $50,000 unless the payments made to Margaritaville in the year leading up to the claim exceed that amount. This could significantly limit the compensation a customer might receive, even if actual damages are much higher.
Additionally, the FDD states that neither party is liable for special, indirect, punitive, or consequential damages, including lost profits, revenue, or savings, regardless of whether the possibility of such damages was known. Any claim must be brought within 36 months after a party knew or reasonably should have known about it. This section outlines the financial risks and protections in place for both Camp Margaritaville and its customers, setting clear boundaries for potential legal liabilities.