When are gift card or coupon purchases included in Camp Margaritaville's gross revenue?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Revenue" shall mean, for each calendar month following the Opening Date (or any component thereof or prorated portion thereof), all revenue, income and proceeds derived from the operation and management of the Resort, Food and Beverage Service; Merchandise sales, resort fees, destination fees, mandatory surcharges for facilities, and any other revenue arising from use of the Camp Margaritaville Intellectual Property pursuant to this Agreement, the Amenities Rider or any addendum thereof. Gross Revenue shall exclude only the following items, without regard to any exclusions listed within any defined term incorporated herein:
(i) free or discounted Overnight Accommodations and upgrades or other "comps" that the Resort collects no revenue or in-kind value for;
- (ii) federal, state, or municipal excise, room, sales, or use taxes, or similar taxes collected from guests and paid to an applicable governmental authority;
- (iii) gratuities, service charges, or similar receipts collected and then paid directly to staff;
- (iv) any sale of fixtures, machinery, or other equipment that is not in the ordinary course of business;
- (v) any gift card, coupons, or the like at the time of purchase, but which shall be included in Gross Revenue upon redemption; and
- (vi) any other adjustments to revenue in conformance with the Uniform System (excluding any adjustment that excludes resort fees and the like);
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, gift card or coupon purchases are not included in gross revenue at the time of purchase. Instead, they are included in gross revenue upon redemption. This means that when a customer uses a gift card or coupon to pay for goods or services at a Camp Margaritaville location, that transaction is then counted as part of the location's gross revenue for that period.
For a prospective Camp Margaritaville franchisee, this distinction is important for financial tracking and reporting. The franchisee won't recognize revenue from gift card or coupon sales upfront. Instead, they will recognize the revenue later when the cards/coupons are actually used by customers. This can affect the timing of revenue recognition and potentially impact cash flow management.
This policy ensures that Camp Margaritaville franchises only report revenue when goods or services are actually provided to customers, aligning with standard accounting practices. Franchisees should ensure their accounting systems accurately track gift card and coupon redemptions to properly account for gross revenue.