For Camp Margaritaville, are sales taxes included in Gross Rental Revenue?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
2.10 "Gross Rental Revenue" shall mean all revenue generated from the rental of Dwellings through a Rental Program before any splits between Franchisee and Dwelling Owner, excluding:
2.10.1 federal, state, or municipal excise, room, sales, or use taxes, or other similar impositions collected directly from patrons or guests or included as part of the sales price for any goods or services, and which must be remitted to a governmental authority;
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Gross Rental Revenue excludes federal, state, or municipal excise, room, sales, or use taxes. These taxes are collected directly from patrons or guests or included as part of the sales price for any goods or services, and which must be remitted to a governmental authority.
In simpler terms, Camp Margaritaville franchisees do not need to include sales taxes when calculating Gross Rental Revenue. This is because these taxes are collected from customers and then passed on to the government.
This exclusion is beneficial for franchisees as it ensures that royalty fees and other calculations based on revenue are not inflated by taxes that the franchisee is simply collecting on behalf of the government. This practice aligns with standard accounting principles and franchise industry norms, where pass-through taxes are typically excluded from gross revenue calculations.