For Camp Margaritaville, what were the total advertising expenses for the year ended December 31, 2024?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
the useful life of the asset, whichever is shorter.
Normal repair and maintenance costs are charged to expense as incurred. Renovations, betterments, and major repairs greater than $2,000 that materially extend the lives of assets are capitalized, and the assets replaced, if any, are retired. Upon the sale or retirement of property and equipment, the accounts are relieved of the c
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the total advertising expenses for the year ending December 31, 2024, were $4,240,893. These expenses are included within the selling, general, and administrative expenses detailed in the consolidated statements of operations. In comparison, the advertising expenses for the year ended December 31, 2023, amounted to $3,107,970.
This information is relevant for prospective Camp Margaritaville franchisees as it provides insight into the brand's investment in advertising and promotion. Understanding the scale of these expenses can help franchisees gauge the level of support they might expect in terms of marketing and brand awareness initiatives. It also demonstrates the franchisor's commitment to promoting the Camp Margaritaville brand, which can positively impact individual franchise performance.
It's important to note that while Camp Margaritaville invests in system-wide advertising, franchisees may also be required to participate in local advertising efforts. The FDD outlines that franchisees must participate in advertising, marketing, and promotional activities as specified by the franchisor. Franchisees need to obtain prior written approval from Camp Margaritaville for all local advertising plans and materials that reference the brand's intellectual property.
Given that advertising costs are a significant operating expense, potential franchisees should inquire about the franchisor's marketing strategy, the allocation of advertising funds, and the expected impact of these efforts on franchise revenues. Understanding the balance between system-wide and local advertising responsibilities is crucial for budgeting and planning marketing initiatives.