What state's laws govern the validity of Camp Margaritaville as a limited liability company?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Margaritaville Holdings LLC, a Delaware limited liability company (the "Guarantor"), located at 6900 Turkey Lake Road, Suite 200, Orlando, Florida 32819 absolutely and unconditionally guarantees to assume the duties and obligations of Margaritaville RV Resorts, LLC, located at 6900 Turkey Lake Road, Suite 200, Orlando, Florida 32819 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its Camp Margaritaville RV Resorts Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, Margaritaville Holdings LLC, the guarantor, is a Delaware limited liability company. This means that the internal affairs and legal standing of Margaritaville Holdings LLC are governed by Delaware law. Delaware is a common choice for the formation of LLCs due to its business-friendly legal environment.
For a prospective Camp Margaritaville franchisee, this information is relevant because Margaritaville Holdings LLC is guaranteeing the obligations of the franchisor, Margaritaville RV Resorts, LLC. If the franchisee needs to pursue any legal claims against Margaritaville Holdings LLC, the laws of Delaware would apply to matters concerning its structure and operation as an LLC.
It is important for potential franchisees to understand which state's laws govern the entities they are contracting with, as this can affect their legal rights and obligations. While the franchise agreement itself may be governed by a different state's laws, the formation and existence of the LLC are tied to Delaware law.