What was the fair value of non-vested shares of Camp Margaritaville as of December 31, 2024?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ppreciation in the Company that accrue above a Hurdle Amount upon a Company Transaction. A Company Transaction is defined in the MEIPs as the sale of the Company, a liquidity event, a qualified initial public offering, or the dissolution of the Company. In 2023, the Company made the decision to withdraw a portion of the proceeds from the delayed draw term loans and distribute to holders of Class A, B, and C shares. In 2024, the Company withdrew the remaining funds from the delayed draw term loans to distribute to holders of Class A, B, and C shares. The Company paid distributions to Class B and C holders as follows:
| Delayed Draw | Class B | |-------------------|------------------------------| | | Class C | | 2024 Delayed Draw | $ 1,170,953 $ 1,280,932 | | 2023 Delayed Draw | 1,080,880 1,225,157 | In 2023, the Hurdle Amounts for all holders of Class B and C shares who did not partake in the distribution were lowered. The change in hurdle rates was the catalyst for modification accounting, resulting in a revaluation of the shares and incremental compensation costs incurred. Incremental compensation cost resulting from the modification wa
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the fair value of non-vested shares as of December 31, 2024, was $7,978,109. This figure represents the total valuation of shares that have been issued but have not yet fully vested to the holders. Vesting typically occurs over a period of time or upon the achievement of certain milestones.
For a prospective Camp Margaritaville franchisee, understanding the valuation and vesting schedule of shares can be important if they are considering any equity-based compensation or investment opportunities within the franchise system. Non-vested shares do not fully belong to the holder until the vesting conditions are met, meaning they could be forfeited if the conditions are not satisfied.
The FDD also provides comparative data from previous years, showing the changes in share values and vesting status over time. This historical context can help potential franchisees assess the financial trends and equity structure within Camp Margaritaville. Reviewing these figures alongside other financial disclosures in the FDD is essential for making informed decisions about joining the franchise system.
It is important for prospective franchisees to consult with a financial advisor to fully understand the implications of share ownership, vesting schedules, and the overall equity structure of Camp Margaritaville.