What was the amortization of debt issue costs for Camp Margaritaville in 2023?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- No life insurance proceeds were received in 2022. The Company made additional principal payments against the term loan of $787,500 in 2023 and $5,905,000 in 2022; and additional principal payments against the delayed draw of $180,000 in 2023.
The debt facility includes subordinated debt associated with related-party entities. The balance of the 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 issue costs for the year ending December 31, 2023, was $0. In the previous year, ending December 31, 2022, the amortization of debt issue costs was $449,152. This indicates a significant change in the amortization expense from 2022 to 2023.
For a prospective Camp Margaritaville franchisee, understanding these figures is crucial for assessing the financial health and debt management strategies of the company. Amortization of debt issue costs reflects how the expenses associated with obtaining debt are recognized over time. A decrease to $0 suggests that these costs were either fully amortized by 2023, or that the debt structure was altered, eliminating further amortization expenses.
It's important for potential franchisees to investigate the reasons behind this change. They should inquire about the company's debt management strategies, the specifics of the debt facilities, and how these changes might impact the financial performance and stability of Camp Margaritaville. This information will help franchisees better understand the financial risks and opportunities associated with investing in a Camp Margaritaville franchise.