What is the term of the Trademark License Agreement for the Camp Margaritaville Intellectual Property?
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, has a term that is concurrent with the termination or expiration of the last sub-license or franchise agreement to a developer/operator of a Camp Margaritaville Resort. This means the agreement remains in effect as long as any sub-license or franchise agreement is active.
This arrangement provides long-term stability for Camp Margaritaville franchisees. As long as at least one franchise agreement remains active, the Trademark License Agreement cannot be terminated. This ensures continuous access to the Camp Margaritaville Intellectual Property, which is crucial for brand consistency and operational success.
However, the agreement also stipulates that during the term of any active sub-license or franchise agreement, neither party can terminate the Trademark License Agreement. In the event of a breach, the remedy is limited to monetary damages and equitable remedies, excluding termination. This limitation could be a significant consideration for franchisees, as it restricts the options available in case of disputes or disagreements related to the Trademark License Agreement.
Prospective franchisees should carefully consider the implications of this term, particularly the limitations on termination and available remedies, to fully understand their rights and obligations under the Trademark License Agreement.