What was the amortization of debt issue costs for Camp Margaritaville in 2022?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
e related-party note payable was $9,805,332 as of December 31, 2023 and 2022. The subordinated note is owned by s
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the amortization of debt issuance costs was $449,152 for the year ended December 31, 2022. In 2023, the amortization of debt issuance costs was $0.
Debt issuance cost amortization refers to the process of spreading the cost of issuing debt over the life of the debt. These costs are initially capitalized and then amortized as an expense over the period the debt is outstanding. The amortization is a non-cash expense, meaning it reduces net income without affecting cash flow directly.
For a prospective Camp Margaritaville franchisee, understanding debt issuance cost amortization is important for assessing the company's financial health and profitability. While the franchisee will not directly incur these costs, they reflect the financial strategies and obligations of the parent company, which can indirectly affect the franchise system's stability and resources.