What was the value of Americas Best Value Inn's accrued compensation as of December 31, 2023?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 assets | 1,686 | 2,131 | ||
| Goodwill | 19,680 | 19,680 | ||
| Other long term as sets | 30,308 | 12,324 | ||
| Total assets | $ | 100,942 | $ | 104,599 |
| 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 | ||
| Commitments and contingencies (Note 8) | ||||
| Shareholders' Equity: | ||||
| Common shares, $0.01 par value; 50,000,000 shares authorized, | ||||
| 25,464,899 issued and outstanding | 255 | 255 | ||
| Additional paid in capital | 87,652 | 87,652 | ||
| Accumulated deficit | (9,676) |
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 accrued compensation as of December 31, 2023, was $3,745. This figure is part of the consolidated balance sheets of Red Lion Hotels Corporation (RLHC), the parent company of Americas Best Value Inn. The balance sheets provide a snapshot of the company's assets, liabilities, and equity at a specific point in time. Accrued compensation represents the amount of salaries, wages, and other employee benefits that have been earned by employees but not yet paid out by the company.
For a prospective Americas Best Value Inn franchisee, understanding the parent company's financial statements is crucial. Accrued compensation is a liability, indicating the company's short-term obligations to its employees. A significant increase in accrued compensation from one year to the next could signal changes in staffing levels, compensation policies, or the company's financial health.
Franchisees should monitor these figures to assess the financial stability and management practices of the franchisor. While a moderate level of accrued compensation is normal, substantial fluctuations could warrant further investigation to ensure the franchisor's ability to support its franchisees and maintain brand standards. Reviewing these financial statements helps potential franchisees make informed decisions about their investment.