How are Camp Margaritaville's restaurant royalties calculated?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, restaurant royalties are calculated based on gross sales. These royalties are collected from the operators of restaurants and bars located in the United States, Canada, the Caribbean, Mexico, and Central America. The royalties are recognized during the period in which they are earned.

This means that as a Camp Margaritaville franchisee operating a restaurant, you will pay a percentage of your total revenue (gross sales) to Camp Margaritaville as a royalty. This is a common practice in franchising, where royalties are typically calculated as a percentage of gross sales, although some franchises may use other methods.

It is important for prospective franchisees to understand what is included in gross sales and how this figure is calculated, as this will directly impact the amount of royalties owed to Camp Margaritaville. Franchisees should also inquire about the specific royalty percentage charged on gross sales during the due diligence process.