Although he is giving up his ownership, Buffett will continue having a big say in the chain's operations. Buffett and his company will continue to license to Outback the use of the Cheeseburger in Paradise name, and Outback will be free to use Buffett's name, image and the song "Cheeseburger in Paradise." In return, Outback will pay a royalty of 4.5 percent of restaurant sales to Buffett's company. Outback previously had paid Buffett a royalty of 2 percent, the SEC filing says.
land_shark3 wrote:At the same time, how many times has Buffett ever allowed unlimited use of name/image/CIP song?
Article wrote:Outback will be free to use Buffett's name, image and the song "Cheeseburger in Paradise."
It really isn't unlimited. There is a very precisely drawn license agreement that governs the entire arrangement. Outback/CIP must comply with (and pay for) specific terms of using anything related to the song, Jimmy, or any of a zillion other things that attach to Buffett and his business interests. This was undoubtedly an option in the original agreement, which called for Buffet's organization to get a formula payment in the event one or the other partner (him or Outback) wanted to depart from ownership of the operation itself. Buffett certainly has not given up anything, aqnd will be involved as a licensor as long as the chain exists. Believe me, that's where the butter for his bread came from in this anyway!
If you're going to do nothing at least do it at the beach!
This was actually a pre-arranged deal. When he and Chris Sullivan came up with the plan for the chain, it was only for a limited number of the restaurants to begin with. We've moved well past that number now.
Pursuant to master licenses from Jimmy Buffett to Margaritaville Holdings, LLC, and Margaritaville Holdings to Margaritaville SPI, LLC (“SPI”), SPI has granted an exclusive license to Sunbeam Products, Inc. for use of the MARGARITAVILLE Design Mark including the Hemisphere Dancer Cartouche Design, for blenders, coolers, and grills, with provisions in the Agreement for expansion of the products to include small appliances for food and beverage preparation and cooking, and indoor and outdoor cookware, indoor and outdoor tabletop accessories, indoor and outdoor tableware and indoor and outdoor gas and electric lighting products
Interesting....
And did you see the typo in paragraph 2... Cheesburger Paradise (seems to omit the (in")
Article wrote:Outback will be free to use Buffett's name, image and the song "Cheeseburger in Paradise."