For Camp Margaritaville, what obligations does Margaritaville have regarding third-party consents and payments when using Buffett Works or Non-Buffett Works?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Subject to Section 2.7(b) below, any use of any element of the Buffett Works or Non-Buffett Works by Margaritaville pursuant to this Agreement, including but not limited to the use by Margaritaville of any element of any book, short story or other literary property authored or co-authored by Buffett and the use by Margaritaville of any element of any Composition (collectively, "Buffett Other Use") shall be subject to Margaritaville's obligation:
- (i) to obtain the consent of all appropriate third parties, including but not limited to publishers, record companies, unions, guilds, and public performance societies; and
- (ii) to pay all third-party license fees, royalties and other costs in connection therewith;
provided, however, that, if such Buffett Other Use is otherwise approved by Buffett, Buffett shall grant to Margaritaville the requested consent for such Buffett Other Use to the extent that Buffett controls such Buffett Other Use, and Buffett shall authorize his representatives to use commercially reasonable efforts to facilitate Margaritaville's attempts to obtain third-party consents for such Buffett Other Use to the extent that Buffett does not control such Buffett Other Use.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, Margaritaville's obligations regarding third-party consents and payments when using Buffett Works or Non-Buffett Works are outlined in Section 2.7(a). Margaritaville is responsible for obtaining consent from all relevant third parties, such as publishers, record companies, unions, guilds, and public performance societies. Additionally, Margaritaville must cover all associated third-party license fees, royalties, and other costs.
However, if Buffett approves the use of Buffett Works or Non-Buffett Works, Buffett will grant Margaritaville the necessary consent to the extent that Buffett controls such use. For aspects Buffett doesn't control, Buffett will instruct representatives to make commercially reasonable efforts to help Margaritaville secure the required third-party consents.
This means that as a Camp Margaritaville franchisee, you are not directly responsible for securing these consents or making these payments. Margaritaville handles these obligations, potentially easing the administrative burden on the franchisee. However, it's important to note that delays or complications in obtaining these consents could impact the availability or use of certain Buffett Works or Non-Buffett Works at your Camp Margaritaville location.