What was the total value of Americas Best Value Inn's liabilities as of December 31, 2024?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | ||||
|---|---|---|---|---|
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 1,481 | $ | 1,915 |
| Accrued compensation | 4,202 | 3,745 | ||
| Accrued expenses and other current liabilities | 868 | 1,631 | ||
| Operating lease liabilities | 581 | 595 | ||
| Total current liabilities | 7,132 | 7,886 | ||
| Long term liabilities: | ||||
| Operating lease liabilities, net of current portion | 1,218 | 1,680 | ||
| Due to related parties | 7,234 | 8,768 | ||
| Deferred income taxes | 235 | 235 | ||
| Loyalty program | 139 | - | ||
| Other long-term liabilities | 6,753 | 4,886 | ||
| Total long term liabilities | 15,579 | 15,569 | ||
| Total liabilities | 22,711 | 23,455 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 70–71)
What This Means (2025 FDD)
According to the 2025 FDD, Americas Best Value Inn's total liabilities were valued at $22,711 as of December 31, 2024. This figure represents the sum of the company's current liabilities, which totaled $7,132, and long-term liabilities, which amounted to $15,579.
Breaking down the current liabilities, the most significant components include accounts payable ($1,481), accrued compensation ($4,202), accrued expenses and other current liabilities ($868), and operating lease liabilities ($581). The long-term liabilities consist of operating lease liabilities, net of current portion ($1,218), due to related parties ($7,234), deferred income taxes ($235), loyalty program ($139), and other long-term liabilities ($6,753).
For a prospective Americas Best Value Inn franchisee, understanding the franchisor's liabilities is crucial as it provides insight into the company's financial obligations and overall financial health. A high level of liabilities compared to assets could indicate potential financial strain, which might affect the franchisor's ability to support its franchisees. Therefore, reviewing these figures in conjunction with the asset values and equity is essential for assessing the financial stability of Americas Best Value Inn.