What was the reported value of computer hardware and software for Camp Margaritaville before depreciation?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
cember 1, 2013, the Company entered into an agreement to sell certain venues, including domestic licensing rights, in perpetuity, to International Meal Company, Inc. to operate several pre-existing restaurants. Additionally, the sale applied to venue and expansion units that were not opened at the time of the sale. The last expansion unit opened in Atlanta, Georgia, on June 24, 2022. The purchase price, calculated as a multiple of the venues' earnings during the first 12 months of operations, has not yet
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the value of computer hardware and software before depreciation was reported in the company's consolidated financial statements. As of December 31, 2023, the value was $4,535,972, and as of December 31, 2022, the value was $3,821,190. These figures represent the original cost of the hardware and software before accounting for any depreciation.
For a prospective Camp Margaritaville franchisee, this information provides insight into the scale of technology investments made by the company. It demonstrates the level of resources allocated to computer systems and software, which are essential for managing various aspects of the business. Understanding these values can help a franchisee appreciate the importance of technology in the Camp Margaritaville system and the potential costs associated with maintaining and upgrading these systems over time.
It's important to note that these figures do not represent the net book value of the assets, as accumulated depreciation is listed separately. The accumulated depreciation for computer hardware and software was ($2,651,048) as of December 31, 2023, and ($1,727,230) as of December 31, 2022. This distinction is crucial for assessing the actual value of the technology assets and their impact on the company's overall financial position.