Under what condition can the Trademark License Agreement for Camp Margaritaville not be terminated?
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, cannot be terminated as long as any sub-license or franchise agreement with a Camp Margaritaville Resort developer/operator is in effect. This Trademark License Agreement grants the right to use and sublicense the Camp Margaritaville Intellectual Property.
This condition protects the franchisees and sub-licensees who are operating Camp Margaritaville Resorts. It ensures that the rights to use the Camp Margaritaville Intellectual Property remain in place for the duration of their agreements. If there is a breach of the Trademark License Agreement, the remedy is limited to monetary damages and equitable remedies, specifically excluding termination of the agreement.
This arrangement provides stability for Camp Margaritaville franchisees. It guarantees that the trademark license will remain in effect for the duration of their franchise agreement, preventing potential disruptions to their business operations due to trademark disputes. Prospective franchisees should understand that while the Trademark License Agreement is protected from termination during the term of their franchise agreement, breaches are still subject to monetary and equitable remedies.