According to Camp Margaritaville's 2025 Franchise Disclosure Document, the total amount of notes payable for the company in 2023 was $116,961,518. This figure represents the aggregate of several types of debt obligations, including a note payable to a financial institution line of credit, delayed draw term loans, and a related-party subordinated note.

For a prospective Camp Margaritaville franchisee, understanding the franchisor's debt obligations can provide insights into the financial stability and health of the company. A high level of notes payable might indicate a reliance on borrowing to finance operations or expansion, which could pose risks if the company's revenue streams are not sufficient to cover these obligations. Conversely, it could also reflect strategic investments in growth initiatives.

It's also important to note the breakdown of the notes payable, including the amounts owed to related parties. In 2023, the related-party subordinated note amounted to $9,805,332. Transactions with related parties require careful scrutiny to ensure they are conducted at arm's length and do not present conflicts of interest. Additionally, the FDD indicates that the current portion of notes payable (due within one year) was $240,000 in 2023. This provides a sense of the immediate debt obligations Camp Margaritaville faced.

Prospective franchisees should carefully review the notes to the consolidated financial statements for more detailed information on the terms, interest rates, and maturity dates of these notes payable. Understanding the nature and terms of the franchisor's debt can help franchisees assess the financial risks and opportunities associated with investing in a Camp Margaritaville franchise.