Which state's laws govern the Camp Margaritaville agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Dispute Resolution. If there is a disagreement regarding any aspect of this Agreement, Margaritaville and Company agree to resolve it as follows:
- (a) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida.
- (b) Remedies. Because money damages shall not be a sufficient remedy for a breach of this Agreement by Receiving Party or its Representatives, Disclosing Party shall be entitled to specific performance and injunctive relief as remedies for any such breach or threatened breach. Such remedies shall not be deemed to be the exclusive remedies for a breach of this Agreement by Receiving Party or any of its Representatives but shall be in addition to all other remedies available to Disclosing Party at law or in equity.
- (c) Venue. The location of all dispute resolutions procedures shall be in Orlando, Florida, at a specific location to be selected by the single arbitrator or the multiple arbitrators as the case may be.
- (d) Process. All issues shall be resolved by using the then-existing commercial arbitration rules of the American Arbitration Association, except that, regardless of the rules, there shall be three (3) arbitrators unless the Parties agree in writing to use a single arbitrator.
(e) Awards.
All arbitration awards shall be enforceable by any court that has jurisdiction over the Party against whom enforcement is sought.
The Parties hereby agree to submit voluntarily to the jurisdiction of state and federal courts in Orlando, Florida that are willing to exercise jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, the franchise agreement is governed by Florida law. Specifically, any disagreements regarding the agreement will be resolved in accordance with the laws of the State of Florida. This means that Florida law will be used to interpret the terms of the agreement and resolve any disputes that may arise between Camp Margaritaville and the franchisee.
Furthermore, the FDD specifies that the location for all dispute resolution procedures will be in Orlando, Florida. All issues will be resolved using the commercial arbitration rules of the American Arbitration Association, with three arbitrators unless both parties agree to a single arbitrator. Any arbitration awards made will be enforceable by any court with jurisdiction over the party against whom enforcement is sought, and both parties agree to submit to the jurisdiction of state and federal courts in Orlando, Florida.
However, it's important to note that addenda to the FDD for specific states like Rhode Island and North Dakota include provisions that may override the governing law clause. For example, the Rhode Island addendum states that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of laws from a state other than Rhode Island is void for claims enforceable under the Rhode Island Franchise Investment Act. Similarly, the North Dakota addendum states that the agreement will be governed by North Dakota law. Therefore, franchisees should carefully review any state-specific addenda to understand how they might modify the general governing law provision.
In summary, while the standard Camp Margaritaville franchise agreement is governed by Florida law and requires dispute resolution in Orlando, Florida, franchisees need to be aware of potential state-specific addenda that could alter these terms depending on where their franchise is located.