How is 'Gross Dwelling Revenue' defined for Camp Margaritaville?

Based on the 2025 Camp Margaritaville 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. This definition is important because it establishes the basis upon which royalties and other fees may be calculated.

However, the definition specifically excludes certain items from 'Gross Rental Revenue'. These exclusions include federal, state, or municipal excise, room, sales, or use taxes collected directly from patrons or guests and remitted to a governmental authority. Additionally, gratuities, service charges, or other similar receipts collected for payment to the franchisee's staff, as well as complimentary products, are also excluded from the calculation of Gross Rental Revenue.

For a prospective Camp Margaritaville franchisee, understanding this definition is crucial for accurate financial reporting and royalty payments. It clarifies what revenue streams are subject to royalty fees and which are not, allowing for more precise financial planning and compliance with the franchise agreement. Franchisees should ensure they have systems in place to properly track and differentiate between revenue sources to accurately calculate and report Gross Rental Revenue.