This morning I searched for “Margaritaville Holdings, LLC.” after reading about Jimmy Buffett’s Nevada gaming license. I found out that “Margaritaville Holdings, LLC” is a sub-sidiary of “Cheesburger Holding Company, LLC”. My search led me to this document describing Outback Steakhouses (OS Tropical, Inc.) licensing agreement for the chain of “Cheeseburger in Paradise” restaurants.
I know this is old news and the document is a very boring, legal read but I found the licensing monitary terms interesting:
- On the date of official opening of the twentieth (20th) CIP Restaurant…an additional $20,000 was paid directly to Buffett and an additional $980,000 was paid to Cheeseburger Holdings, LLC.
- As of 1/1/05, 4.5% all restaurant Net Sales is to be paid to the LLC by the 10th day of every month.
- 50% of ALL profit from merchandise sales is paid to the LLC. All new merchandies must be pre-approved by the LLC.
- There is a cap of 250 restaurants on this agreement. NOTE: There currently are only 28 Cheeseburger In Paradise restaurants in operation.