What was the total value of Americas Best Value Inn's goodwill as of December 31, 2024?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
ers that we identified during the audit.
March 24, 2025
RED LION HOTELS CORPORATION CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
| December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 13,316 | $ | 37,753 |
| Accounts receivable, net | 9,258 | 7,259 | ||
| Notes receivable, net | 40 | 42 | ||
| Prepaid expenses and other current assets | 4,592 | 3,441 | ||
| Total current assets | 27,206 | 48,495 | ||
| Property and equipment, net | 1,178 | 816 | ||
| Intangible assets, net | 20,884 | 21,153 | ||
| Operating lease right of use as |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 70–71)
What This Means (2025 FDD)
According to Americas Best Value Inn's 2025 Franchise Disclosure Document, the company's goodwill was valued at $19,680 as of December 31, 2024. Goodwill, in accounting terms, represents the intangible assets of a business, such as brand reputation and customer relationships, that are not separately identifiable. This figure is an important component of the company's overall financial health, as reflected in its balance sheet.
For a prospective Americas Best Value Inn franchisee, understanding the goodwill value can offer insights into the stability and perceived value of the brand. A higher goodwill value often indicates a stronger brand presence and customer loyalty, which can be beneficial for attracting customers and securing financing. However, it's also important to note that goodwill is subject to impairment testing, and its value can decrease if the brand's performance declines.
The FDD also indicates that the company has not recognized any impairment on goodwill during the years ended December 31, 2024, 2023 and 2022. This suggests that the brand's value has remained relatively stable over the past three years. Franchisees should monitor the brand's performance and any factors that could potentially impact its goodwill value, as this can affect the overall financial health of their investment.