What was the resolution of the Boss Investments Ltd. v. Margaritaville case?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Boss Investments Limited a/k/a Boss Investments Ltd. v. Margaritaville of Bahamas, LLC, Margaritaville Enterprises, LLC, Margaritaville Holdings LLC, and James Wiseman (Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida, Case No. 2018-Ca-013658).
On October 26, 2018, Boss Investments Ltd. ("Boss") filed a complaint against Margaritaville of Bahamas, LLC, Margaritaville Enterprises, LLC, Margaritaville Holdings LLC, and James Wiseman, seeking a declaratory judgment, permanent injunctive relief, and damages. The complaint arose out of a Trademark Sub-License Agreement, dated as of June 4, 2014, by and between Margaritaville of Bahamas, LLC and Boss ("Boss Agreement"). Boss alleged that another trademark license agreement signed by the defendants in connection with a resort development in the Bahamas that includes a hotel and condominiums ("Bahamian Hotel"), violated the Boss Agreement.
This matter was settled pursuant to the Amended Confidential Mediated Settlement Agreement (the "Settlement Agreement") and Third Amendment to Trademark Sub-License Agreement, dated as of December 30, 2020. Pursuant to the Settlement Agreement, the case was voluntarily dismissed with prejudice as of January 8, 2021. Without admitting any liability for the claims, under the Settlement Agreement, the corporate defendants agreed to pay to Boss 50 percent of future royalties from food and beverage, and certain merchandise, from the Bahamian Hotel. As part of the Settlement Agreement, prior restrictions under the Boss Agreement in the Bahamas were released except for certain restrictions in Paradise Island and Nassau.
Source: Item 3 — LITIGATION (FDD pages 16–18)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the case of Boss Investments Limited a/k/a Boss Investments Ltd. v. Margaritaville of Bahamas, LLC, Margaritaville Enterprises, LLC, Margaritaville Holdings LLC, and James Wiseman was settled through an Amended Confidential Mediated Settlement Agreement and a Third Amendment to the Trademark Sub-License Agreement, both dated December 30, 2020. Consequently, the case was voluntarily dismissed with prejudice on January 8, 2021.
Under the terms of the Settlement Agreement, the corporate defendants agreed to pay Boss Investments Ltd. 50 percent of future royalties from food and beverage, and certain merchandise, originating from the Bahamian Hotel. This payment was made without any admission of liability for the claims initially brought by Boss Investments Ltd.
Furthermore, the Settlement Agreement released prior restrictions under the Boss Agreement in the Bahamas, with the exception of specific restrictions pertaining to Paradise Island and Nassau. This resolution provides clarity for prospective Camp Margaritaville franchisees by outlining the financial and operational impacts of settling the dispute, specifically regarding royalty payments and geographical restrictions in the Bahamas.