For Camp Margaritaville, how much were the advertising expenses for the year ended December 31, 2023?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
| Other revenue | 7,108,803 | 5,978,600 |
| Total revenues | 92,488,263 | 74,860,628 |
| Operating expenses | ||
| Cost of restaurant and retail merchandise sales | 1,814,546 | 1,740,415 |
| Selling, general, and administrative | 65,463,612 | 47,750,487 |
| Depreciation | 1,433,243 | 1,420,259 |
| Total operating expenses | 68,711,401 | 50,911,161 |
| Income from operations | 23,776,862 | 23,949,467 |
| Other income (expenses) | ||
| Net (loss) gain from investments in unconsolidated entities | ( 2,000,000) | 375,000 |
| Net loss on sale of venues | ( 1,902,027) | ( 3,171,426) |
| Net gain on insurance proceeds | 20,088,815 | – |
| Net loss on extinguishment of debt | – | ( 4,336,839) |
| Interest income | 808,337 | 208,929 |
| Interest expense | ( 9,421,558) | |
| ( 12,330,510) | ||
| Net income before income taxes | 28,441,477 | 7,603,573 |
| Income taxes | 656,806 | 359,741 |
| Net income from continuing operations | $ 27,784,671 | $ 7,243,832 |
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
Based on the 2025 Camp Margaritaville Franchise Disclosure Document, specific advertising expenses for the year ending December 31, 2023, are not explicitly detailed as a separate line item. However, the document does include a consolidated financial statement that lists broader categories of expenses. For the year ended December 31, 2023, the "Selling, general, and administrative" expenses totaled $65,463,612. It is important to note that advertising costs are most likely included within this larger "Selling, general, and administrative" category, but the FDD does not break out advertising as its own distinct expense.
Prospective Camp Margaritaville franchisees should recognize that while the FDD provides an overview of financial performance, it does not offer a granular breakdown of advertising expenditures. Understanding the actual advertising costs is crucial for budgeting and assessing the potential return on investment. The franchisee is required to participate in system-wide advertising and marketing programs, and while local advertising is not mandated, it is expected.
Given the lack of specific advertising expense details, potential franchisees should engage in thorough due diligence. They should ask Camp Margaritaville's franchisor for a more detailed breakdown of the "Selling, general, and administrative" expenses, specifically requesting the amount spent on advertising and marketing activities. Additionally, franchisees should inquire about the allocation of marketing fees and the expected costs for local advertising to develop a comprehensive understanding of advertising-related financial obligations. This information is vital for making an informed investment decision.