What was the total compensation expense for Camp Margaritaville's MEIP I shares as of December 31, 2023?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
| MEIP I | MEIP II | |||||
|---|---|---|---|---|---|---|
| Outstanding | Vested | |||||
| Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | |
| Outstanding as of December 31, 2022 | 538 | $ 2,666,239 | 1,835 | $ 17,061,658 | 183 | $ 1,706,166 |
| Granted | – | – | 11 | 160,132 | 1 | 14,557 |
| Vested | – | – | – | – | 367 | 4,213,970 |
| Impact of modification | – | 5,218,279 | – | 2,027,514 | – | 2,027,514 |
| Forfeited/redeemed/settled | – | – | – | – | – | – |
| Outstanding as of December 31, 2023 | 538 | $ 8,054,536 | 1,846 | $ 19,249,304 | 551 | $ 7,962,207 |
| Non vested as of December 31, 2023 | – | $ – | – | $ – | 1,295 | $ 11,287,097 |
| December 31 | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| MEIP I | $ - $ | 5,218,279 | |||
| MEIP II | 3,308,988 | 6,256,041 | |||
| Total | $ 3,308,988 $ | 11,474,320 |
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the fair value of outstanding MEIP I shares as of December 31, 2023, was $8,054,536. The impact of modification to MEIP I shares was $5,218,279. The compensation expense for MEIP I shares for the year ended December 31, 2023 was $5,218,279.
These figures reflect the value and changes in the equity incentive plan shares, which are likely used to compensate key employees or stakeholders within Camp Margaritaville. For a prospective franchisee, understanding these figures is crucial as it provides insight into the company's compensation structure and how it incentivizes its key personnel. This can be an indicator of the company's commitment to attracting and retaining talent, which ultimately impacts the support and services provided to franchisees.
It's important to note that these figures represent the fair value of shares and the impact of modifications, not necessarily direct cash compensation. The actual compensation structure may involve a combination of salary, bonuses, and equity-based incentives. A potential franchisee should inquire about the overall compensation philosophy and how it aligns with the performance and success of the franchise system.
Furthermore, the information provided also includes details on MEIP II shares and their fair value, as well as vested and non-vested shares. This broader context helps in understanding the overall equity structure and potential dilution effects. A franchisee should consider the implications of these equity plans on the long-term stability and growth of Camp Margaritaville.