Under the Camp Margaritaville franchise agreement, what does the term 'De-Branding Actions' refer to?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 16.01 De-Branding Actions. At the end of Term Franchisee must immediately cease use of Camp Margaritaville Intellectual Property and commence such de-branding actions as are required to preclude a commercially reasonable likelihood of confusion on the part of the public as to whether the Resort is a "Margaritaville" establishment (the "De-Branding Actions"), including:
- (h) deleting from any computer system or POS System any Confidential Information or otherwise proprietary information, including, but not limited to recipes, menu items, inventory, and pricing;
- (i) closing accounts with any suppliers or vendors opened in connection with the operation of the Resort under the Camp Margaritaville Intellectual Property, which Franchisor shall have the right to do on Franchisee's behalf if Franchisee fails to do so;
- (j) immediately ceasing acceptance of and participation in any Pre-Sales, including gift cards or certificates and the like, coupons, or the Loyalty Programs associated with the Camp Margaritaville System;
- (k) canceling all assumed name or equivalent registrations using or incorporating the Camp Margaritaville Intellectual Property; and,
- (l) promptly notifying any applicable telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories, and listings associated with any of the Camp Margaritaville Intellectual Property.
Franchisee shall pay to Franchisor a $10,000 fee in consideration of Franchisor's oversight and approval of the De-Branding Actions. This fee is separate from, and in addition to, Franchisee's costs of the De-Branding Actions.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, 'De-Branding Actions' refer to the steps a franchisee must take at the end of their franchise term to eliminate any public confusion about whether the Resort is still a 'Margaritaville' establishment. These actions involve discontinuing the use of Camp Margaritaville's intellectual property.
Specifically, the franchisee is obligated to remove all references to the Camp Margaritaville brand. This includes deleting confidential and proprietary information from computer and POS systems, such as recipes, menu items, inventory details, and pricing. Franchisees must also close all accounts with suppliers and vendors that were opened under the Camp Margaritaville name.
Furthermore, franchisees must cease participation in any pre-sales activities, including gift cards, coupons, and loyalty programs associated with the Camp Margaritaville system. They are also required to cancel any assumed name registrations that incorporate Camp Margaritaville's intellectual property. Finally, the franchisee must notify all relevant entities, such as telephone, internet, email, and directory services, about the termination or expiration of their right to use any numbers, addresses, domain names, or listings associated with Camp Margaritaville.
For overseeing and approving these de-branding actions, Camp Margaritaville charges the franchisee a $10,000 fee, which is separate from the franchisee's direct costs associated with carrying out the de-branding actions. This comprehensive process ensures a clean break between the franchisee and the Camp Margaritaville brand, protecting the brand's integrity and preventing potential consumer confusion.