FDD Items 3 & 4 · 2024 filing
Camp Margaritaville® litigation history
What Camp Margaritaville® disclosed about lawsuits, arbitrations and bankruptcy in the 2024 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 & 4 at a glance
What the filing discloses
- Cases disclosed
- 3
- Item 3, as counted in the filing
- Largest disclosed settlement
- $8K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2024
- Disclosures cover the prior ten years
Extracted from the 2024 Franchise Disclosure Document
Item 3: litigation
1) Boss Investments Ltd. v. Margaritaville of Bahamas LLC et al. (trademark sub-license dispute, settled Dec 2020 with defendants paying 50% of future royalties). 2) Shultz/Koptieff Trusts v. Margaritaville Enterprises et al. (cottage owners fraud/tort claims, settled April 2023 mutual walk-away). 3) CA Commissioner of Financial Protection and Innovation v. Margaritaville Hotels & Resorts LLC (failure to file franchise exemption notices for 3 CA sales 2019-2020, consent order March 2020, $7,500 penalty).
Disclosure signals that moved the score
How this shows up in the verdict
- Going concern status is FALSE — indicates potential financial instability or viability concerns at corporate level
- Multiple active litigation matters including trademark disputes, property/tort claims, and regulatory violations — indicates operational and legal governance issues
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?