What were the amounts of receivables written off by Camp Margaritaville in 2024 and 2023?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
e venue of $3,171,426. After assessing the venue's earnings and forecasts in 2023, the Company updated its estimate of the purchase price to nil, resulting in an additional loss on the sale of the venue in 2023. There was no change in the estimate regarding the purchase price of the venue in 2024. In addition to any cash proceeds, the Company will also receive ongoing royalty payments based on each venue's monthly net sales.
The breakdown of components of the asset sale to IMC as of December 31, 2024, is outlined in the table below:
| Fixed assets (2,847,174) Development costs (2,100,000) Inventory | – |
|---|---|
| (126,279) | |
| Loss on disposal of venue | |
| $ (5,073,453) |
Notes to Consolidated Fina
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, information regarding write-offs of receivables is not explicitly detailed. However, the document does mention a specific instance of an impairment loss related to an investment in an unconsolidated entity.
Specifically, in October 2023, the majority owner of 560 MV Hotel LLC (a resort in New York) foreclosed on its loan agreement, leading to the lender assuming control in December 2023. As a result, Camp Margaritaville lost its ownership interest and fully impaired its investment in the property. The investment account for 560 MV Hotel LLC was $0 for the years ended December 31, 2024 and 2023. The impairment loss is reflected in net loss on investments in unconsolidated entities on the consolidated statements of operations.
While this describes an investment impairment, it does not provide the specific figures for receivables written off, which would typically relate to uncollectible debts from customers or franchisees. A prospective franchisee should inquire directly with Camp Margaritaville's financial department to obtain detailed figures on receivable write-offs for 2024 and 2023 to fully understand the company's financial health and risk management practices.