What is the definition of Gross Food and Beverage Revenue for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenue. "Gross Revenue" means, for each calendar month following the opening date of the Resort (or any component thereof or prorated portion thereof), all revenue, income and proceeds derived from the operation and management of the Resort.
These amounts include: (a) all revenue, income and proceeds derived from the operation and management of the Resort; (b) "Gross Food and Beverage Revenue" which includes all revenue from any Margaritaville branded restaurants and any other food and beverage services at the Resort; and any and all room service, banquet and catering revenues; (c) revenue from all Merchandise sales; (d) resort fees, destination fees, and mandatory surcharges for facilities; (e) revenue from any Amenities; and (f) any other revenue arising from use of the Camp Margaritaville Intellectual Property pursuant to this Agreement.
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Gross Food and Beverage Revenue is a component of Gross Revenue, which is defined as all revenue, income, and proceeds derived from the operation and management of the Resort for each calendar month following the opening date. Gross Food and Beverage Revenue specifically includes all revenue from any Margaritaville branded restaurants and any other food and beverage services at the Resort. It also encompasses any and all room service, banquet, and catering revenues.
For a Camp Margaritaville franchisee, this definition is important because many fees, such as the Royalty Fee and Marketing Fee, are calculated as a percentage of Gross Revenue. Understanding what constitutes Gross Food and Beverage Revenue, and how it contributes to overall Gross Revenue, is essential for accurately calculating these fees and projecting potential earnings. Franchisees need to ensure they track all revenue streams from food and beverage services, including restaurant sales, room service, banquets, and catering, to properly report their Gross Revenue.
The FDD specifies that Gross Revenue includes several other categories in addition to Gross Food and Beverage Revenue, such as revenue from merchandise sales, resort fees, and amenities. It also provides exclusions, such as taxes collected from guests and paid to a governmental authority, gratuities paid directly to staff, and adjustments to revenue in conformance with GAAP and the Uniform System of Accounts for the Lodging Industry. Franchisees should carefully review these inclusions and exclusions to ensure accurate reporting and avoid potential discrepancies or disputes with Camp Margaritaville.
Camp Margaritaville requires franchisees to provide both informal monthly estimates and formal quarterly projections of Gross Revenue, including all revenue derived from services, FBR Units, and Amenities. This ongoing reporting requirement underscores the importance of maintaining accurate records and a clear understanding of what constitutes Gross Revenue, including Gross Food and Beverage Revenue. Franchisees should establish robust accounting practices to track and report these figures accurately and in a timely manner.