What kind of revenue is included in the quarterly projection for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
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.
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees must provide a quarterly projection to the company within 30 days of each quarter's end. This projection must include 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.
Gross Revenue for Camp Margaritaville encompasses all income and proceeds from operating and managing the Resort. This includes revenue from Margaritaville branded restaurants and other food and beverage services (Gross Food and Beverage Revenue), merchandise sales, resort fees, destination fees, mandatory surcharges for facilities, and revenue from any Amenities. It also covers any other revenue generated from using Camp Margaritaville Intellectual Property under the Franchise Agreement.
However, Gross Revenue excludes certain items. 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, and gratuities or service charges paid directly to staff. Also excluded are sales of fixtures or machinery not in the ordinary course of business, the initial sale of gift cards or coupons (though these are included upon redemption), complimentary breakfast service, and adjustments to revenue conforming to GAAP and the Uniform System of Accounts for the Lodging Industry. Camp Margaritaville requires franchisees and themselves to account for Gross Revenue according to the Uniform System.
This comprehensive definition of Gross Revenue ensures that Camp Margaritaville has a clear understanding of the franchisee's financial performance and can accurately calculate royalty fees and other financial obligations. Prospective franchisees should carefully review these inclusions and exclusions to understand how their revenue will be assessed and reported.