What was the merger purchase price adjustment for Americas Best Value Inn in 2022?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance at December 31, 2022 | 25,464,899 | 2 55 | 87,652 | (8,240) | 79,667 | | Net Income | - | - | - | 1,477 | 1,477 | | Balance at December 31, 2023 | 25,464,899 | 2 55 | 87,652 | (6,763) | 81,144 | | Net loss | - | - | - | (2,913) | (2,913) | | Balance at December 31, 2024 | 25,464,899 | $ 2 55 | $ 87,652 | $ (9,676) | $ 78,231 |
EXHIBIT K
AGREEMENT AND CONSENT TO TRANSFER
AGREEMENT AND CONSENT TO TRANSFER
| (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) | ||
| Prepaid expenses and other current assets | ( 706) | ( 414) | ( 541) | ||
| Other long term assets | ( 19,498) | ( 9,440) | ( 1,007) | ||
| Accounts payable | ( 434) | ( 436) | ( 682) | ||
| Loyalty program liability | 139 | - | - | ||
| Accrued compensation, accrued expenses, and other liabilities | 893 | ( 2,777) | 3,600 | ||
| Net cash provided by (used in) operating activities | ( 22,170) | ( 10,926) | 3,861 | ||
| Cash flows from investing activities: | |||||
| Capital expenditures | ( 735) | ( 433) | ( 358) | ||
| Proceeds from sale of hotel | - | 550 | - | ||
| Merger purchase price adjustment | - | - | ( 264) | ||
| Disbursement of notes receivable | ( 12) | - | - | ||
| Collection of notes receivable | 14 | 39 | 54 | ||
| Cash transfers from (to) parent for centralized cash management | - | 38,264 | (3,245) | ||
| Net cash provided by (used in) investing activities | ( 733) | 38,420 | (3,813) | ||
| Cash flows from financing activities: | |||||
| Cash transfers from (to) parent for centralized cash management | ( 1,534) | 8,768 | - | ||
| Net cash provided by (used in) financing activities | ( 1,534) | 8,768 | - | ||
| Change in cash and cash equivalents: | |||||
| Net increase (decrease) in cash and cash equivalents | (24,437) | 36,262 | 48 | ||
| Cash and cash |
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Americas Best Value Inn had a merger purchase price adjustment of $(264) thousand in 2022. This figure is part of the cash flows from investing activities.
For a prospective franchisee, this number reflects adjustments made during a merger, impacting the overall financial picture. It is important to note that this is a historical figure and may not be indicative of future performance.
Understanding the context of this adjustment would be crucial. A franchisee should inquire with the franchisor about the specifics of the merger that led to this adjustment and how it affected the Americas Best Value Inn brand. This information can provide insights into the financial stability and strategic decisions of the company.