How are consumer product royalties calculated for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Consumer Product Royalties
Licensing fees are received from entities that have contracted with the Company for the limited right to use Margaritaville brand names. The names are used by other retailers and manufacturers in the sales and marketing of various consumer products and services. Fees are calculated based on net sales; gross profit; earnings before interest, taxes, depreciation, and amortization (EBITDA); or a fixed annual amount, as defined in each respective agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, consumer product royalties are licensing fees collected from entities that have agreements with the company to use the Margaritaville brand. These entities, which include retailers and manufacturers, use the brand for selling and marketing various consumer products and services.
The fees for Camp Margaritaville are calculated based on several factors, including net sales, gross profit, earnings before interest, taxes, depreciation, and amortization (EBITDA), or a fixed annual amount. The specific calculation method is determined by the terms outlined in each individual agreement between Camp Margaritaville and the licensing entity.
For a prospective Camp Margaritaville franchisee, this means that the royalty structure for consumer products can vary significantly depending on the specific agreement in place. It is important to review these agreements carefully to understand how the royalties are calculated and what factors will impact the fees paid. This also indicates that Camp Margaritaville has flexibility in negotiating these agreements, which could be beneficial depending on the specific circumstances of the licensing entity.