For a Camp Margaritaville franchise, how is revenue from the Lodge factored into the calculation of Gross Revenue?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
| ("Rider") | THIS LODGE RIDER TO THE CAMP MARGARITAVILLE FRANCHISE AGREEMENT is made and entered into by and between Margaritaville RV Resorts, LLC, a Delaware limited |
|---|---|
| liability company ("Franchisor") and , a("Franchisee") as a rider to the Franchise Agreement dated between Franchisor and Franchisee (the "Agreement") as of | |
| ("Effective Date"). | |
| as a Camp Margaritaville Resort at the Site; | WHEREAS, pursuant to the Agreement, Franchisor has authorized Franchisee to operate the Resort |
| Resort; | WHEREAS, Franchisee has applied to operate a Lodge in connection with the operation of the WHEREAS, Franchisor is willing to accept such application and grant a license to Franchisee to use the Camp Margaritaville Intellectual Property to open and operate a Lodge at the Site and solely in |
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Lodge is an optional amenity that a franchisee may operate at their Camp Margaritaville Resort. The document references a "LODGE RIDER TO THE CAMP MARGARITAVILLE FRANCHISE AGREEMENT", indicating that operating a Lodge requires a separate agreement. This rider grants the franchisee a license to use Camp Margaritaville's intellectual property to operate the Lodge at the designated site.
While the excerpts provided confirm the existence of a Lodge Rider, they do not specify how revenue from the Lodge is factored into the calculation of Gross Revenue or how royalties are calculated for Lodge revenue. The general royalty structure involves paying a percentage of Gross Rental Revenue and Gross Dwelling Revenue, but it's unclear if Lodge revenue falls under either of these categories or is subject to a different royalty rate.
Therefore, a prospective Camp Margaritaville franchisee should inquire with the franchisor about the specific terms and conditions outlined in the Lodge Rider, including how Lodge revenue is defined, how it is reported, and what royalty fees apply. Understanding these details is crucial for accurately forecasting potential revenue and expenses associated with operating a Camp Margaritaville Resort with a Lodge.