What were the total operating expenses for Camp Margaritaville for the year ended December 31, 2024?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31 | ||
|---|---|---|
| 2024 | 2023 | |
| Revenues | ||
| Restaurant and retail merchandise sales | $ 6,495,530 | $ 6,784,532 |
| Restaurant royalties | 9,480,337 | 10,166,895 |
| Resort royalties | 31,673,974 | 29,097,964 |
| Residential and timeshare royalties | 37,379,336 | 35,130,754 |
| Consumer products royalties | 4,594,556 | 4,199,315 |
| Other revenue | 15,010,443 | 7,108,803 |
| Total revenues | 104,634,176 | 92,488,263 |
| Operating expenses | ||
| Cost of restaurant and retail merchandise sales | 1,710,201 | 1,814,546 |
| Selling, general, and administrative | 68,220,301 | 65,463,612 |
| Depreciation | 1,447,387 | 1,433,243 |
| Total operating expenses | 71,377,889 | 68,711,401 |
| Income from operations | 33,256,287 | 23,776,862 |
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 year ended December 31, 2024, were $71,377,889. This figure is comprised of several components, including the cost of restaurant and retail merchandise sales, selling, general, and administrative expenses, and depreciation. In comparison, the total operating expenses for the year ended December 31, 2023, were $68,711,401.
The most significant component of the operating expenses is the selling, general, and administrative costs, which amounted to $68,220,301 in 2024 and $65,463,612 in 2023. This suggests that the majority of Camp Margaritaville's operating expenses are related to the overhead and administrative functions required to run the business. The cost of restaurant and retail merchandise sales was $1,710,201 in 2024 and $1,814,546 in 2023. Depreciation expenses remained relatively stable at $1,447,387 in 2024 and $1,433,243 in 2023.
For a prospective franchisee, understanding these operating expenses is crucial for projecting the potential profitability of a Camp Margaritaville franchise. Franchisees should carefully analyze these figures in relation to the revenue figures provided in the FDD to assess the potential return on investment. It's also important to consider how these expenses might vary based on the specific location, size, and operational model of the franchise. Franchisees should also inquire about any potential changes in these expenses, such as increases in administrative costs or changes in depreciation schedules, that could impact future profitability.