What is the definition of 'ADR' in the Camp Margaritaville Franchise Agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Words and terms used in this Agreement as defined terms with initial capital letters shall have the meaning ascribed thereto in this Agreement including, without limitation, the following words and terms shall have the respective meanings ascribed to them below and grammatical variations of such words and terms shall have corresponding meanings.
- "ADR" shall mean a measure of the average daily rate paid for rooms sold, calculated by dividing room revenue by rooms sold;
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, ADR is defined within Exhibit A to the Franchise Agreement. ADR stands for Average Daily Rate, a key performance indicator in the hospitality industry. For Camp Margaritaville franchisees, ADR is a measure of the average rate paid for each occupied room or accommodation.
The document specifies that ADR is calculated by dividing the total revenue generated from room sales by the total number of rooms sold during a specific period. This metric helps Camp Margaritaville franchisees understand how much revenue they are generating per occupied unit, which is crucial for assessing pricing strategies and overall revenue management.
Understanding ADR is essential for Camp Margaritaville franchisees as it directly impacts profitability and financial performance. By monitoring and analyzing ADR, franchisees can make informed decisions about pricing, promotions, and inventory management to optimize revenue generation and maximize returns on investment. This metric, combined with occupancy rates, provides a comprehensive view of a resort's financial health and operational efficiency.