factual

Does Camp Margaritaville include sublease rental income as part of its 'Other Revenues'?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

Other revenues consist of earnings derived from activities outside the Company's core operations. Reservation system revenues, marketing fees, sublease rental income, reimbursed expenses from partners, and gift card breakage are all reflected in this grouping.

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

What This Means (2025 FDD)

According to Camp Margaritaville's 2025 Franchise Disclosure Document, 'Other Revenues' consist of earnings derived from activities outside of the company's core operations. These include reservation system revenues, marketing fees, sublease rental income, reimbursed expenses from partners, and gift card breakage. This means that if a Camp Margaritaville franchisee subleases any portion of their property, the income generated from that sublease is included in the 'Other Revenues' category for accounting purposes.

For a prospective franchisee, this is important for understanding the different revenue streams that contribute to the overall financial performance of a Camp Margaritaville location. While core operations likely refer to the primary business of renting RV spaces and accommodations, 'Other Revenues' can represent a significant supplementary income source. Subleasing, in particular, could be a strategic way to maximize revenue from the property.

It's worth noting that the FDD also details various royalties and fees that Camp Margaritaville collects, such as licensing royalties from restaurants, resorts, consumer products, and residential/timeshare sales. Understanding how sublease rental income fits into the broader financial picture, alongside these other revenue streams and associated fees, is crucial for assessing the overall profitability and financial obligations of a Camp Margaritaville franchise.

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.