For Camp Margaritaville, where are advertising expenses included on the consolidated statements of operations?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) conducting local, regional or national advertising, promotional or brand building programs of any kind;
- (b) developing, maintaining, administering, directing, preparing, or reviewing advertising and marketing materials, promotions and programs;
- (c) public awareness of any of the Camp Margaritaville Intellectual Property and/or the Margaritaville brand;
- (d) public and consumer relations and publicity;
- (e) brand development;
- (f) research and development of technology, products and services;
- (g) website and application development and search engine optimization;
- (h) development and implementation of quality control programs;
- (i) changes and improvements to the Camp Margaritaville System;
- (j) the fees and expenses of any advertising agency engaged by Franchisor, in its discretion, to assist in producing or conducting advertising or marketing efforts;
- (k) any other programs or activities that Franchisor deems necessary or appropriate to promote or improve the Camp Margaritaville System; and
- (l) Franchisor's or its Affiliates' expenses associated with direct or indirect labor, administrative, overhead or other expenses incurred in connection with promotional, marketing or advertising efforts or any of the foregoing activities, including working with public relations firms, advertising agencies, advertising placement services, and creative talent.
Franchisor's ability to use the Marketing Fee on any of the foregoing products or services does not reduce or negate Franchisee's obligation to separately pay for those products or services as otherwise provided herein. Franchisor retains sole authority to direct the Marketing Program, with sole control over the creative concepts, materials, and media used and the placement and allocation of advertising programs. Franchisor reserves the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales Franchisor deems appropriate. The Marketing Program is not a trust or escrow account, and Franchisor has no fiduciary obligation to franchisees arising from the Marketing Program.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
Based on the 2025 Camp Margaritaville Franchise Disclosure Document, the specific location of advertising expenses on the consolidated statements of operations is not explicitly detailed in the provided excerpts. The FDD does outline how the marketing fees collected by the franchisor can be used. These include a wide range of activities such as conducting advertising programs, developing marketing materials, enhancing brand awareness, public relations, brand development, research and development, website and application development, quality control programs, system improvements, advertising agency fees, and covering the franchisor's expenses related to these activities.
While the FDD details the permissible uses of marketing fees, it does not specify where these expenses are reported on the consolidated financial statements. This means a prospective franchisee cannot determine from this document alone how advertising and marketing expenditures are accounted for in the company's financials.
To gain a clearer understanding, a potential Camp Margaritaville franchisee should directly ask the franchisor for a sample consolidated statement of operations. This will allow them to see exactly where advertising and marketing expenses are listed and how significant these costs are in relation to overall revenue and expenses. Understanding this aspect of the financial statements is crucial for assessing the financial health and transparency of the Camp Margaritaville franchise system.