What was the change in accounts receivable, net for Americas Best Value Inn in 2022?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| (dollars in thousands) | |||||
|---|---|---|---|---|---|
| 2024 | 2023 (Restated) | 2022 | |||
| Cash flows from operating activities: | |||||
| Net income (loss) | $ ( 2,913) | $ 1,477 | $ ( 3,186) | ||
| Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||||
| Depreciation and amortization | 489 | 1,691 | 3,506 | ||
| Amortization of key money and contract costs | 1,514 | 396 | 7 | ||
| Amortization of contract liabilities | 192 | 1,497 | 713 | ||
| Deferred income taxes | - | 1 | 1 | ||
| Provision (Recovery) of doubtful accounts | 1,112 | ( 1,819) | 654 | ||
| Other income (expense), net | - | - | 846 | ||
| Loss (gain) on sale of hotel | 153 | ( 160) | - | ||
| Change in current assets and liabilities | |||||
| Accounts receivable, net | ( 3,111) | ( 942) | ( 50) |
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the change in accounts receivable, net for Americas Best Value Inn in 2022 was a decrease of $50,000. This figure is part of the cash flow statement, reflecting changes in current assets and liabilities related to the brand's operating activities.
For a prospective franchisee, this indicates how Americas Best Value Inn manages its incoming payments and outstanding invoices. A decrease in accounts receivable could suggest efficient collection practices or changes in payment terms offered to customers or partners. It is important to note that this is a consolidated figure for the entire Americas Best Value Inn system, not an individual franchise location.
Understanding these changes can help a franchisee assess the financial health and operational efficiency of the brand. While a decrease might seem positive, it's crucial to consider the context and reasons behind it. Further investigation into the brand's financial statements and discussions with existing franchisees could provide a more comprehensive understanding of these figures and their implications.