What is the relationship between notes receivable and Caribbean restaurant locations for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ment consisted of the following:
| December 31 | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Computer hardware and software | $ 5,088,599 | $ 4,535,972 | |
| Leasehold improvements | 1,591,606 | 2,948,434 | |
| Furniture, fixtures, and equipment | 2,836,331 | 2,558,060 | |
| Vehicles | 1,999,915 | – | |
| Subtotal | 11,516,451 | 10,042,466 | |
| Less | |||
| accumulated depreciation: | |||
| Computer hardware and software | (3,093,929) | (2,651,048) | |
| Leasehold improvements | (697,977) | (1,326,005) | |
| Furniture, fixtures, and equipment | (2,675,145) | (2,504,550) | |
| Vehicles | (99,996) | – | |
| Subtotal | (6,567,047) | (6,481,603) | |
| Total | $ 4,949,404 | $ 3,560,863 |
Depreciation expense for the years ended December 31,
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Margaritaville Holdings LLC executed a promissory note with its Caribbean restaurant license partner on April 19, 2021, due to uncollected royalties from 2019 and 2020, totaling $637,279. The note originally carried a 2% interest rate with quarterly payments starting May 31, 2021, and principal payments beginning June 30, 2022, to be collected quarterly over two years.
In November 2022, the note was amended and increased to $1,137,390 to include uncollected royalties from 2021 and 2022, with new payment terms. The amended note has a 5% interest rate, paid monthly, and principal payments are scheduled from January 2023 through December 2027.
The FDD states that the receivable balance is reflected in short- and long-term note receivables on the consolidated financial statements. This arrangement indicates that Margaritaville Holdings LLC is willing to work with its international licensees to ensure long-term financial stability, even if it means restructuring debt and payment terms. For a prospective franchisee, this demonstrates the franchisor's commitment to its partners and its proactive approach to managing financial challenges within its network.