Are 'comps' included in the Gross Revenue calculation for a Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ny Amenities; and (f) any other revenue arising from use of the Camp Margaritaville Intellectual Property pursuant to this Agreement. Gross Revenue shall exclude only: (a) free or discounted rooms and upgrades or other "comps" for which the Resort collects no revenue or in-kind value for; (b) federal, state, or municipal excise, room, sales, or use taxes, or similar taxes collected from guests and paid to an applicable governmental authority; (c) gratuities, service charges, or similar receipts collected and then paid directly to staff; (d) any sale of fixtures, machinery, or other equipment that is not in the ordinary course of your business; (e) any gift card, coupons, or the like at the time of purchase, but which shall be included in Gross Revenue upon redemption; (f) any complimentary breakfast service;
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the calculation of Gross Revenue excludes 'comps'. Specifically, Gross Revenue does not include free or discounted rooms and upgrades or other 'comps' for which the Resort collects no revenue or in-kind value. This means that if a Camp Margaritaville franchisee provides complimentary rooms or services and receives no payment or equivalent benefit in return, the value of those comps is not counted as part of the location's Gross Revenue.
This exclusion can impact the royalty fees and marketing fees that a franchisee pays, as these fees are typically calculated as a percentage of Gross Revenue. By excluding comps, the franchisee's Gross Revenue will be lower, resulting in lower royalty and marketing fee payments to Camp Margaritaville. This could be a financial benefit to the franchisee, especially if they strategically use comps for marketing or promotional purposes.
However, it's important for prospective Camp Margaritaville franchisees to understand the specific definition of 'comps' and ensure they accurately track and report these items to avoid any discrepancies or disputes with the franchisor. Additionally, franchisees should be aware of all other inclusions and exclusions in the Gross Revenue calculation to ensure accurate financial reporting and fee payments.