factual

What was the total value of Americas Best Value Inn's goodwill as of December 31, 2024?

Americas_Best_Value_Inn Franchise · 2025 FDD

Answer 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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.