What does 'ADR' mean in the context of a Camp Margaritaville franchise agreement?

According to the 2025 Camp Margaritaville Franchise Disclosure Document, ADR is defined as a financial metric. Specifically, ADR stands for the average daily rate paid for rooms sold. This is calculated by dividing the total room revenue by the number of rooms sold.

For a Camp Margaritaville franchisee, understanding ADR is crucial for assessing the financial performance of their location. It provides a clear picture of how much revenue is being generated per occupied room on average. This metric can be used to compare performance against other similar resorts, track trends over time, and make informed decisions about pricing strategies.

By monitoring ADR, franchisees can optimize their pricing to maximize revenue while remaining competitive in their local market. This involves considering factors such as seasonality, local events, and competitor pricing. A higher ADR generally indicates stronger revenue generation, but it's important to balance this with occupancy rates to ensure overall profitability. Franchisees should work closely with Camp Margaritaville to understand how to effectively use ADR in their business planning and operational strategies.