What is included in the definition of 'Gross Revenue' for a Camp Margaritaville Resort?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
There currently are no franchisee advertising cooperatives in the Camp Margaritaville Resort network.
Explanatory Notes:
-
- Gross Revenue. "Gross Revenue" means, for each calendar month following the opening date of the Resort (or any component thereof or prorated portion thereof), all revenue, income and proceeds derived from the operation and management of the Resort. These amounts include: (a) all revenue, income and proceeds derived from the operation and management of the Resort; (b) "Gross Food and Beverage Revenue" which includes all revenue from any Margaritaville branded restaurants and any other food and beverage services at the Resort; and any and all room service, banquet and catering revenues; (c) revenue from all Merchandise sales; (d) resort fees, destination fees, and mandatory surcharges for facilities; (e) revenue from any 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). We and you will account for Gross Revenue according to the Uniform System.
-
- Royalty Fee. You are also required to provide an informal, non-binding estimate of your Gross Revenue within 10 days after the end of each calendar month. You must also provide a quarterly projection, in a format acceptable to us, within 30 days of the end of each quarter during the term, including an estimate of Gross Revenue, and all other revenue derived from services, FBR Units, and Amenities at the Resort for the remainder of the calendar year.
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, "Gross Revenue" is defined as all revenue, income, and proceeds derived from the operation and management of the Resort for each calendar month following the opening date. This encompasses several specific income streams.
Specifically, the definition of Gross Revenue includes all revenue, income, and proceeds derived from the operation and management of the Resort, Gross Food and Beverage Revenue (including revenue from Margaritaville branded restaurants and other food and beverage services, room service, banquet, and catering revenues), revenue from all Merchandise sales, resort fees, destination fees, and mandatory surcharges for facilities, revenue from any Amenities, and any other revenue arising from use of the Camp Margaritaville Intellectual Property pursuant to the Franchise Agreement.
However, the 2025 FDD also specifies items that are excluded from Gross Revenue. These exclusions include free or discounted rooms and upgrades for which the Resort collects no revenue or in-kind value, federal, state, or municipal excise, room, sales, or use taxes collected from guests and paid to a governmental authority, gratuities and service charges paid directly to staff, sales of fixtures or machinery not in the ordinary course of business, and the initial sale of gift cards or coupons (although these are included upon redemption). Additionally, any complimentary breakfast service and 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 are excluded, except for adjustments that exclude resort fees and the like. Camp Margaritaville and the franchisee will account for Gross Revenue according to the Uniform System.
Camp Margaritaville franchisees are required to provide an informal, non-binding estimate of their Gross Revenue within 10 days after the end of each calendar month. They must also provide a quarterly projection, in a format acceptable to Camp Margaritaville, within 30 days of the end of each quarter during the term, including an estimate of Gross Revenue, and all other revenue derived from services, FBR Units, and Amenities at the Resort for the remainder of the calendar year. Understanding what constitutes Gross Revenue is crucial because it directly impacts the calculation of royalty fees and other payments to Camp Margaritaville.