What was the depreciation expense for Camp Margaritaville for 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, was $1,447,387. In the previous year, ending December 31, 2023, the depreciation expense totaled $1,433,243.

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. For a Camp Margaritaville franchisee, this figure represents the annual expense recognized for the wear and tear or obsolescence of assets like buildings, equipment, and furniture used in the business. It's a non-cash expense, meaning it doesn't involve an actual outflow of cash, but it reduces the company's reported profit.

Understanding depreciation expense is important for franchisees as it impacts their profitability and tax obligations. While it reduces taxable income, franchisees should also be aware of the actual costs of maintaining and replacing depreciating assets to ensure the long-term viability of their Camp Margaritaville location. The consistent depreciation expense between 2023 and 2024 suggests stable asset values and usage during those periods.