ORLANDO, Fla. – This lawsuit is brought to you by the letter “S” — as in SeaWorld and Sesame Workshop.
The parent company of the “Sesame Street” franchise is suing SeaWorld Parks and Entertainment, accusing them of “repeated, intentional breaches” of its current contract agreement, and “rogue retaliatory actions.”
Sesame Workshop doesn’t just want money, though; it wants to end its nearly 50-year deal with SeaWorld altogether.
News 6 has reached out to SeaWorld for comment, and we are waiting to hear back.
In the lawsuit filed in federal court, Sesame Workshop claims SeaWorld failed to pay millions of dollars in royalties in 2022 for the Sesame Place theme park in the Philadelphia area, which is run by SeaWorld.
Sesame Workshop says even though it was awarded the royalties during arbitration, and in a court ruling in 2024, SeaWorld has refused to pay.
[WATCH: Sesame Street opens at SeaWorld (from 2019)]
Moreover, the lawsuit accuses SeaWorld of reneging on aspects of the 2017 agreement the two companies signed, including a promise to open a third Sesame Place theme park, and SeaWorld’s decision to shut down the Sesame Street Bay of Play at SeaWorld San Antonio.
In both cases, SeaWorld refused to pay fees owed to Sesame Workshop for those decisions as part of the agreement, the lawsuit says.
Then, in September 2025, the court issued writs of garnishment against SeaWorld to obtain the arbitration money SeaWorld had still not paid.
The lawsuit says SeaWorld, that same day, announced it was closing Sesame Place San Diego without letting Sesame Workshop know. SeaWorld decided to transition to a “seasonal schedule.”
Sesame Workshop claims all of these actions amount to retaliation by SeaWorld for the royalties dispute.
The lawsuit also claims that while SeaWorld did pay the royalties required by the courts in October 2025, from then on SeaWorld “unilaterally stopped paying royalties to Sesame Workshop and, until recently, even ignored Sesame Workshop’s requests for royalty reports needed to calculate new invoices.”
[WATCH: SeaWorld Orlando unveils first-of-its-kind indoor suspended dark ride]
The lawsuit also says Sesame Workshop has been locked out of the companies’ shared social media approval documents, and SeaWorld has also sent out marketing materials using the Sesame Workshop IP without approval.
Sesame Place says it wants the court to find SeaWorld in breach of contract, it wants the right to terminate its agreement, and it is seeking monetary damages.
“SeaWorld has wholly ignored its obligations under the Agreement, and has gone rogue with Sesame Workshop’s valuable IP. Its actions have not only wrongfully denied Sesame Workshop, a nonprofit children’s organization, royalties and termination fees, but also, more importantly, undermined Sesame Workshop’s brand,” the lawsuit reads. “Sesame Workshop did not want to terminate its Agreement with its exclusive U.S. theme park licensee of over forty-five years, but it has no choice.”
SeaWorld also has Sesame Street areas at SeaWorld Orlando and Busch Gardens Tampa Bay.
[READ the full lawsuit below]