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Sesame Workshop Files Lawsuit Against United Parks & Resorts Over Sesame Street Theme Park Partnership

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United Parks & Resorts is facing a lawsuit in Manhattan federal court from Sesame Workshop, the owners of the beloved children’s franchise Sesame Street.

According to the filing, Sesame Workshop says that United Parks and Resorts has served as its exclusive U.S. theme park licensee for more than 45 years, helping bring the world of Sesame Street to life in parks across the country.

Over the decades, the partnership has produced numerous themed lands, attractions, and character experiences featuring fan favorites such as Big Bird, Cookie Monster, Elmo, and Count von Count.

What the Lawsuit Claims

The complaint alleges that United Parks & Resorts has failed to meet several contractual obligations in recent years. Sesame Workshop claims that certain parks and attractions have been closed for extended periods and that royalty payments tied to the licensing agreement were recently withheld.

According to the filing, United Parks & Resorts has argued that Sesame Workshop has not been sufficiently investing in the Sesame Street brand, which it claims has affected the value of the partnership.

In response, a spokesperson for Sesame Workshop stated:

“United Parks & Resorts has repeatedly failed to honor its contractual obligations, leaving Sesame Workshop no choice but to pursue litigation to protect our brand and the trust that families place in it.”

What This Could Mean for the Parks

The lawsuit is seeking unspecified compensatory and punitive damages, but it could also have a much bigger impact on the theme parks themselves.

If the partnership were to end, United Parks & Resorts could lose the rights to use Sesame Street characters in its parks, potentially forcing several areas and attractions to close or undergo major retheming.

Two of the most notable locations affected could include:

Both areas are themed to the iconic children’s series and feature rides, play areas, and character meet-and-greets designed for younger guests.

What Happens Next

For now, the case will move through federal court, and it remains unclear whether the two sides will reach a settlement or continue toward a full legal battle.

However, if the partnership were to dissolve, it could mark the end of one of the longest-running theme park licensing agreements in the industry.

For fans visiting parks like SeaWorld Orlando or Busch Gardens Tampa, the outcome could potentially reshape some of the most family-friendly areas in these parks.

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