What was the amount of the related-party subordinated note for Camp Margaritaville in 2024?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
eeds of the refinanced debt facility to pay off the previous debt. In June 2023, the Company withdrew $24,000,000 against the delayed draw term loans. In May 2024, the Company withdrew the remaining $26,000,000 against the delayed draw term loans.
Notes to Consolidated Financial Statements (continued)
7. Notes Payable (continued)
The debt facility requires the Company to hold individual life insurance policies for key persons during the term. The life insurance policies have no cash surrender value and the Company will be paid the stated death benefit of the certificate when the insured di
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the related-party subordinated note was $9,805,332 in 2024. This indicates the level of debt Camp Margaritaville has with related parties..
This figure is important for prospective franchisees as it provides insight into the financial structure of Camp Margaritaville. A related-party subordinated note suggests that insiders or entities closely associated with the company have lent money to the business, and this debt is subordinate to other debts, meaning it would be repaid after senior debt holders are paid.
Franchisees should consider the implications of this related-party debt, as it could affect the overall financial stability and flexibility of Camp Margaritaville. It is advisable to inquire with Camp Margaritaville about the terms of this note, including interest rates, repayment schedules, and the nature of the related party, to fully understand any potential impact on the franchise system.