What was the loss on sale of venues for Camp Margaritaville in the year ended December 31, 2024?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31 | ||||
|---|---|---|---|---|
| 2023 2024 | ||||
| Assets | ||||
| Current assets: | ||||
| Cash | $ | 27,181,476 | $ | 17,701,723 |
| Accounts receivable | 15,504,605 | 17,026,684 | ||
| Short-term notes receivable | 227,478 | 227,478 | ||
| Short-term notes receivable – employees | 1,072,640 | 3,700 | ||
| Short-term contract asset | 239,782 | 232,684 | ||
| Inventory | 875,887 | 446,872 | ||
| Prepaid expenses | 2,141,643 | 1,891,395 | ||
| Total current assets | 47,243,511 | 37,530,536 | ||
| Contract assets, less current portion | 1,947,528 | 2,037,030 | ||
| Property and equipment, net | 4,949,404 | 3,560,863 | ||
| Right-of-use assets | 1,362,320 | 621,617 | ||
| Long-term notes receivable | 414,579 | 733,046 | ||
| Long-term notes receivable – employees | 21,159 | 1,010,782 | ||
| Other noncurrent assets | 1,208,615 | 866,666 | ||
| Total assets | $ | 57,147,116 | $ | 46,360,540 |
| Liabilities and partners' deficit | ||||
| Current liabilities: | ||||
| Accounts payable and accrued expenses | $ | 10,089,465 | $ | 9,325,451 |
| Contract liabilities | 137,498 | 128,511 | ||
| Deferred revenue | 4,682,638 | 4,714,981 | ||
| Lease liability | 402,302 | 403,822 | ||
| Current portion of notes payable | 500,000 | 240,000 | ||
| Total current liabilities | 15,811,903 | 14,812,765 | ||
| Accrued expenses, less current portion | 2,725,371 | 2,311,576 | ||
| Contract liabilities, less current portion | 230,353 | 239,684 | ||
| Deferred revenue, less current portion | 8,819,155 | 13,079,618 | ||
| Lease liability, less current portion | 978,121 | 209,854 | ||
| Notes payable, related parties | 9,805,332 |
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the loss on the sale of venues for the year ending December 31, 2024, was $1,902,027. This figure is part of the consolidated financial statements and supplementary information provided in the FDD. It is important to note that this loss is specifically related to venue sales and is separate from other financial activities such as revenue from restaurant and retail merchandise sales, royalties, or other operating expenses.
This loss on the sale of venues impacts Camp Margaritaville's overall financial performance. While the company reported a net income of $27,784,671 for the same period, the loss on the sale of venues reduced the income from operations. Prospective franchisees should consider this when evaluating the financial stability and performance of Camp Margaritaville. Understanding the context behind such losses, such as the reasons for selling venues and the terms of those sales, is crucial for assessing the potential risks and rewards of investing in this franchise.
Furthermore, the FDD indicates that there was no loss on sale of venues for the year ended December 31, 2023. The change from no loss in 2023 to a loss of $1,902,027 in 2024 represents a significant shift. This may be due to a strategic decision to divest certain venues or due to underperforming locations. Franchisees should inquire about the details of these venue sales to understand the franchisor's strategy and its potential impact on the franchise system.
In addition to the loss on sale of venues, Camp Margaritaville also experienced a loss on investment in unconsolidated entities of $2,000,000 in 2024. However, they also had a net gain on insurance proceeds of $20,088,815. These figures provide a more comprehensive view of the company's financial activities and should be considered alongside the loss on venue sales when evaluating the franchise opportunity.