What was the equity compensation for Class B and C shares for Camp Margaritaville in 2022?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
l partners' deficit | | (101,014,475) | | (108,194,511) | | Total liabilities and partners' deficit | $ | 46,360,540 | $ | 40,091,838 |
2304-4243515 4
See accompanying notes.
Consolidated Statements of Operations
| Year Ended December 31 | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues | ||||
| Restaurant and retail merchandise sales | $ 6,784,532 | $ 6,487,545 | ||
| Restaurant royalties | 10,166,895 | 9,033,781 | ||
| Resort royalties | 29,097,964 | 26,963,473 | ||
| Residential and timeshare royalties | 35,130,754 | 21,691,627 | ||
| Consumer products royalties | 4,199,315 | 4,705,602 |
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the equity compensation for Class B and C shares in 2022 is detailed in the consolidated balance sheets. The Class C interest for the year ended December 31, 2022, was $1,706,166. There is no specific mention of Class B shares in this section.
This information is relevant to prospective franchisees as it provides insight into the equity structure and compensation expenses of Camp Margaritaville. Understanding the different classes of shares (A, B, and C) and their associated rights, as described elsewhere in the document, is crucial for assessing the overall financial health and management incentives within the company.
The document also mentions that Class B shares are fully vested, while Class C shares have a service-based vesting component over five years. Both classes entitle recipients to a share of future profits and appreciation above a Hurdle Amount upon a Company Transaction. In 2023, the Hurdle Amounts were lowered, leading to a revaluation of the shares and incremental compensation costs, as well as distributions to Class B and C holders. These details help in understanding the potential future implications of the equity structure.
For a prospective franchisee, it's important to understand how these equity incentives align with the overall performance and growth of Camp Margaritaville. While the document provides a snapshot of the equity compensation, further due diligence, including discussions with current franchisees and financial advisors, is recommended to fully assess the implications.