What was the depreciation expense for Camp Margaritaville in the year ended December 31, 2024?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the depreciation expense for the year ending December 31, 2024, totaled $1,447,387. In the previous year, ending December 31, 2023, the depreciation expense was $1,433,243.

Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. For Camp Margaritaville franchisees, this means that a portion of the initial investment in assets like buildings, equipment, and furniture is recognized as an expense each year, reflecting the gradual decline in the asset's value. This non-cash expense impacts the profitability of the franchise on paper, reducing taxable income.

Understanding depreciation is crucial for managing the financial performance of a Camp Margaritaville franchise. While it doesn't involve an actual outflow of cash, it affects the net income reported on financial statements and can influence decisions related to asset management, tax planning, and overall profitability assessments. Franchisees should consult with financial advisors to optimize their depreciation strategies and ensure accurate financial reporting.