When are gift cards included in Gross Revenue calculations for a Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ny Amenities; and (f) any other revenue arising from use of the Camp Margaritaville Intellectual Property pursuant to this Agreement. Gross Revenue shall exclude only: (a) free or discounted rooms and upgrades or other "comps" for which the Resort collects no revenue or in-kind value for; (b) federal, state, or municipal excise, room, sales, or use taxes, or similar taxes collected from guests and paid to an applicable governmental authority; (c) gratuities, service charges, or similar receipts collected and then paid directly to staff; (d) any sale of fixtures, machinery, or other equipment that is not in the ordinary course of your business; (e) any gift card, coupons, or the like at the time of purchase, but which shall be included in Gross Revenue upon redemption; (f) any complimentary breakfast service; and (g) any other adjustments to revenue in conformance with accounting principles generally accepted in the United States ("GAAP") and the Uniform System of Accounts for the Lodging Industry, 11th Edition (Educational Institute of the American Hotel and Motel Association, publisher), or a later edition we approve ("Uniform System") (excluding any adjustment that excludes resort fees and the like).
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, gift cards are not included in gross revenue calculations at the time of purchase. Instead, they are included in gross revenue upon redemption. This means that when a customer uses a gift card 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 royalty and other fee calculation purposes.
This policy affects how Camp Margaritaville franchisees manage their revenue recognition. They don't count the initial sale of a gift card as revenue. Instead, the revenue is recognized when the gift card is used. This is a common practice in the franchise industry, as it aligns revenue recognition with the actual provision of goods or services.
For Camp Margaritaville Resorts offering rentals, the FDD specifies that gift cards are excluded from Gross Rental Revenue at the time of purchase but included upon redemption. Similarly, for Resorts with Lodges, gift cards are excluded at the time of purchase but included in Gross Revenue upon redemption. This consistent treatment across different revenue streams ensures that royalties are based on actual usage and consumption at the Camp Margaritaville location.