For Camp Margaritaville, how are licensing royalties calculated for permanent dwelling and vacation home sales in Margaritaville-themed housing communities?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensing royalties are earned on permanent dwelling and vacation home sales in Margaritavillethemed housing communities throughout the United States, Mexico, and Central America. The royalties are calculated as a percentage of the purchase price and recognized once the home sales have closed.
Franchisee shall pay to Franchisor, within thirty (30) days following the close of the calendar month of the closing of any Dwelling sale pursuant to this Rider, royalties in the amount of three percent (3%) of the Gross Dwelling Revenue ("Dwelling Royalty").
If applicable law permits the payment of royalties on the re-sale of any Dwelling, Franchisor shall receive a re-sale royalty of one percent (1%) of the sales price. Each seller shall be required by the Franchisee to make available to Franchisor the closing statement that reflects the purchase price paid by each purchaser so that Franchisor can accurately confirm the re-sale royalty amount.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the franchisor earns licensing royalties on permanent dwelling and vacation home sales within Margaritaville-themed housing communities. These royalties are calculated as a percentage of the purchase price of the dwelling. The franchisor recognizes the royalty once the home sale has closed.
In addition to the general royalty described above, Camp Margaritaville franchisees must pay a 3% Dwelling Royalty to the franchisor. This royalty is based on Gross Dwelling Revenue and is due within thirty days following the close of the calendar month in which the dwelling sale closes.
If permitted by applicable law, Camp Margaritaville also receives a re-sale royalty of 1% of the sales price when a dwelling is resold. The seller is required to provide the franchisor with the closing statement to confirm the re-sale royalty amount. The franchisee is responsible for ensuring that these restrictions are enforced through covenants and deed restrictions.