Under what circumstances can Margaritaville assign its rights and obligations in the Camp Margaritaville agreement without Buffett's prior consent?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, Margaritaville shall have the right and power, without the Buffett's prior consent, to assign its rights and obligations hereunder, in whole or in part, to any Affiliate or to any person or corporation succeeding to substantially Margaritaville's entire business as related to the Field as a result of sale, consolidation, reorganization, or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 FDD, Camp Margaritaville can assign its rights and obligations under the agreement without prior written consent from Buffett under specific circumstances. This is detailed within the section addressing the binding nature of the agreement and assignment rights.
Specifically, Margaritaville has the right to assign its rights and obligations, either in whole or in part, to an affiliate. This provides Camp Margaritaville with flexibility in managing its corporate structure and related entities.
Additionally, Camp Margaritaville can assign its rights and obligations to any person or corporation that succeeds to substantially Margaritaville's entire business related to the relevant field. This would typically occur in situations such as a sale, consolidation, reorganization, or other similar business transaction. This clause ensures that the agreement can continue without disruption if Margaritaville undergoes significant corporate changes.