What was the amount of long-term notes receivable for Camp Margaritaville as of December 31, 2022?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
guidance. Effective for fiscal years beginning after December 15, 2022, earlier application is permitted. The Company adopted the standard in 2023 using a modifiedretrospective approach. There was no material impact on the Company's Consolidated Financial Statements
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, as of December 31, 2022, the long-term notes receivable was $1,767,210. This figure represents money owed to Camp Margaritaville that is not expected to be collected within one year. Notes receivable typically arise from extending credit to customers or other parties. In Camp Margaritaville's case, this receivable is connected to a promissory note with a Caribbean restaurant license partner related to uncollected royalties.
The promissory note originated on April 19, 2021, with an initial amount of $637,279 related to uncollected royalties from 2019 and 2020. The note was later amended in November 2022, increasing the amount to $1,137,390 to include uncollected royalties from 2021 and 2022 and also modifying the payment terms. The amended note carries an interest rate of 5%, with monthly interest payments and principal payments scheduled from January 2023 through December 2027.
The fact that Camp Margaritaville has a significant long-term note receivable indicates that a portion of its revenue recognition involves extending credit to its partners. Prospective franchisees should be aware of these financial arrangements, as they can impact the company's cash flow and overall financial health. Understanding the terms and collectability of these notes is crucial for assessing the stability and performance of Camp Margaritaville.