factual

For Camp Margaritaville, what is excluded from 'Gross Rental Revenue'?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 2.10 "Gross Rental Revenue" shall mean all revenue generated from the rental of Dwellings through a Rental Program before any splits between Franchisee and Dwelling Owner, excluding:

  • 2.10.1 federal, state, or municipal excise, room, sales, or use taxes, or other similar impositions collected directly from patrons or guests or included as part of the sales price for any goods or services, and which must be remitted to a governmental authority;

  • 2.10.2 gratuities, services charges or other similar receipts collected for payment to and paid to Franchisee's staff and complimentary products;

Source: Item 23 — RECEIPTS (FDD pages 72–406)

What This Means (2025 FDD)

According to Camp Margaritaville's 2025 Franchise Disclosure Document, Gross Rental Revenue is defined as all revenue generated from the rental of Dwellings through a Rental Program before any splits between the franchisee and the Dwelling Owner. However, there are specific exclusions from this definition.

The following items are excluded from Gross Rental Revenue: federal, state, or municipal excise, room, sales, or use taxes, or other similar impositions collected directly from patrons or guests or included as part of the sales price for any goods or services, and which must be remitted to a governmental authority. Also excluded are gratuities, services charges or other similar receipts collected for payment to and paid to Franchisee's staff and complimentary products.

For a prospective Camp Margaritaville franchisee, understanding these exclusions is crucial for accurate financial reporting and royalty calculations. By excluding these items, the franchisee ensures that royalties are based on the actual revenue received from rental activities, rather than including pass-through taxes or payments to staff. This distinction is important for maintaining transparency and compliance with the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.