What was the total amount of delayed draw term loans payable by Camp Margaritaville in 2023?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
eeds of the refinanced debt facility to pay off the previous debt. In June 2023, the Company withdrew $24,000,000 against the delayed draw term loans. In May 2024, the Company withdrew the remaining $26,000,000 against the delayed draw term loans.
Notes to Consolidated Financial Statements (continued)
7. Notes Payable (continued)
The debt facility requires the Company to hold individual life insurance policies for key persons during the term. The life insurance policies have no cash surrender value and the Company will be paid the stated death benefit of the certificate when the insured di
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the total amount of delayed draw term loans payable in 2023 was $23,820,000. This figure represents the outstanding balance of these specific loans as of the end of the 2023 fiscal year.
For a prospective franchisee, this indicates the level of debt Camp Margaritaville carries and its reliance on delayed draw term loans. Understanding the nature of these loans, their interest rates, and repayment terms is crucial. Delayed draw loans typically allow the borrower to draw funds over a specified period, which can be beneficial for managing cash flow during the initial stages of business operations.
However, it also implies ongoing interest expenses and principal repayment obligations that could impact profitability. Franchisees should assess how these existing debts might affect Camp Margaritaville's financial stability and its ability to support franchisees. It is important to investigate the details of these loans to fully understand the financial obligations of the company.
It would be prudent for potential franchisees to request further information on the terms of the delayed draw term loans, including interest rates, maturity dates, and any covenants or restrictions associated with the debt. This information will help in evaluating the financial health and stability of Camp Margaritaville.