What was the cost of Americas Best Value Inn's agreements with franchisees as of December 31, 2024?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
impact of sold assets was $0.4 million.
5. Intangible Assets, net
At December 31, 2024 and 2023, our intangible assets were as follows (in thousands):
| Asset Description | Cost | Accumulated Amo |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 70–71)
What This Means (2025 FDD)
According to the 2025 FDD, as of December 31, 2024, the original cost of Americas Best Value Inn's agreements with franchisees was $5,184. After accumulated amortization of $902, the net value of these agreements was $4,282.
This figure represents the initial investment Americas Best Value Inn made in securing franchise agreements. The amortization reflects the systematic reduction of the asset's value over its useful life, recognizing the expense of the asset over time. The net value shows the remaining economic benefit that Americas Best Value Inn expects to derive from these agreements.
For a prospective franchisee, this information provides insight into how Americas Best Value Inn accounts for its franchise agreements as assets. Understanding the amortization schedule and the net value of these agreements can offer a clearer picture of the financial management and long-term planning within the Americas Best Value Inn franchise system. This also demonstrates that the agreements with franchisees are considered valuable assets to the company.