What were the total operating expenses for Camp Margaritaville for the year ended December 31, 2022?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31 | ||
|---|---|---|
| 2023 | 2022 | |
| Revenues | ||
| Restaurant and retail merchandise sales | $ 6,784,532 | $ 6,487,545 |
| Restaurant royalties | 10,166,895 | 9,033,781 |
| Resort royalties | 29,097,964 | 26,963,473 |
| Residential and timeshare royalties | 35,130,754 | 21,691,627 |
| Consumer products royalties | 4,199,315 | 4,705,602 |
| Other revenue | 7,108,803 | 5,978,600 |
| Total revenues | 92,488,263 | 74,860,628 |
| Operating expenses | ||
| Cost of restaurant and retail merchandise sales | 1,814,546 | 1,740,415 |
| Selling, general, and administrative | 65,463,612 | 47,750,487 |
| Depreciation | 1,433,243 | 1,420,259 |
| Total operating expenses | 68,711,401 | 50,911,161 |
| Income from operations | 23,776,862 | 23,949,467 |
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the total operating expenses for the company for the year ended December 31, 2022, were $50,911,161. These expenses include the cost of restaurant and retail merchandise sales, which amounted to $1,740,415, selling, general, and administrative expenses totaling $47,750,487, and depreciation expenses of $1,420,259.
For a prospective Camp Margaritaville franchisee, understanding these operating expenses is crucial for financial planning and assessing the potential profitability of a franchise location. These figures provide a benchmark against which franchisees can compare their own operating costs once their location is up and running. It's important to note that these are the expenses for the overall company, and individual franchise locations may vary based on factors such as location, size, and specific services offered.
Franchisees should carefully analyze each component of operating expenses to identify areas where they can potentially control costs and improve efficiency. For example, managing the cost of restaurant and retail merchandise sales through effective inventory management and vendor negotiations can directly impact the bottom line. Similarly, controlling selling, general, and administrative expenses through efficient staffing and operational practices can contribute to increased profitability. Depreciation, while a non-cash expense, should also be considered as it reflects the wear and tear of assets and the need for future capital expenditures.
It is also important to note that the FDD includes financial statements that were audited by an independent auditor. These audits provide an additional level of assurance regarding the accuracy and reliability of the financial information presented. Prospective franchisees should review these audited statements carefully and consult with a financial advisor to fully understand the financial performance of Camp Margaritaville and its implications for their investment.