What is a party's remedy for breach of the Trademark License Agreement for Camp Margaritaville, excluding termination?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Margaritaville Enterprises granted us the rights to use and sublicense the Camp Margaritaville Intellectual Property under a trademark license agreement dated January 14, 2019 ("Trademark License Agreement"). The Trademark License Agreement has a term concurrent with the termination or expiration of the last sub-license or franchise agreement to a developer/operator of a Camp Margaritaville Resort. So long as the term of any such sub-license or franchise agreement is in effect, the Trademark License Agreement may not be terminated and a party's remedy for breach shall be limited to monetary damages and equitable remedies (excluding termination).
Source: Item 13 — TRADEMARKS (FDD pages 57–59)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Trademark License Agreement, dated January 14, 2019, dictates the terms under which Camp Margaritaville Intellectual Property is used. The agreement's term is tied to the sub-license or franchise agreement with a Camp Margaritaville Resort developer/operator.
Specifically, as long as any sub-license or franchise agreement remains active, the Trademark License Agreement cannot be terminated. In the event of a breach of the Trademark License Agreement, the remedies available to either party are limited to monetary damages and equitable remedies.
This means that while the agreement is in effect, neither party can seek to end the agreement due to a breach. Instead, they are restricted to seeking financial compensation for any losses incurred or equitable relief, which typically involves a court order compelling a party to fulfill their obligations or cease certain actions. This clause provides stability during the term of the franchise agreement, preventing termination as a remedy for breaches and focusing instead on resolving issues through financial compensation or court-ordered actions.