Under what conditions can the Company assign its rights or obligations under the Camp Margaritaville agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.7 Assignment.
Except in connection with a transfer of the Branding Agreement as permitted therein, Company may not assign, transfer, or delegate any or all of its rights or obligations under this Agreement, without the prior written consent of Margaritaville, in its sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, the company's ability to assign its rights and obligations is limited. Camp Margaritaville may not assign, transfer, or delegate any of its rights or obligations under the agreement without Margaritaville's prior written consent, which Margaritaville can withhold at its sole discretion.
However, there is an exception to this restriction. Camp Margaritaville can assign its rights and obligations in connection with a transfer of the Branding Agreement, as permitted within that agreement. This means that if the Branding Agreement is transferred, Camp Margaritaville's rights and obligations under the franchise agreement can also be transferred as part of that process.
This clause protects Margaritaville from having the Camp Margaritaville franchise agreement transferred to an undesirable party without their consent. It ensures Margaritaville maintains control over who operates Camp Margaritaville franchises and that any potential new franchisee meets their standards, unless the transfer is linked to the Branding Agreement.