On whom are the provisions of the Camp Margaritaville franchise agreement binding?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the franchise agreement is binding upon the parties involved and extends to their respective affiliates, licensees, successors, and permitted assigns. This means that not only are the original franchisor and franchisee obligated to adhere to the terms of the agreement, but also any entities or individuals who become associated with either party through ownership, licensing, or transfer of rights.

This provision ensures that the obligations and benefits outlined in the franchise agreement continue even if the ownership or structure of either the franchisor or franchisee changes. For example, if the franchisee sells the Camp Margaritaville business to a new owner, that new owner (as the 'successor' or 'assign') would also be bound by the original franchise agreement. Similarly, if Camp Margaritaville licenses its brand to another company, that licensee would also need to comply with relevant aspects of the franchise agreement.

The inclusion of 'affiliates' broadens the scope to include any entities controlled by or under common control with the franchisor or franchisee. This prevents either party from circumventing the agreement by shifting responsibilities or rights to a related entity. However, the agreement specifies that assignments must be 'permitted,' indicating that Camp Margaritaville likely retains some control over who can assume the franchisee's responsibilities.

This clause is a standard provision in franchise agreements, designed to protect the interests of both parties over the long term and ensure continuity in the franchise relationship despite changes in ownership or business structure. Prospective Camp Margaritaville franchisees should carefully consider this provision, as it means they cannot simply walk away from their obligations by transferring the franchise to an unqualified party without the franchisor's approval.