For Best Western, what was the amortization amount for AutoClerk's developed technology?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
assigned to goodwill.
The Company assessed the qualitative factors attributable to the AC reporting unit and determined that the fair value of the reporting unit is not more likely than not less than its carrying amount as of August 31, 2024 and 2023. Therefore, no quantitative analysis was performed and no impairment was recorded for the years ended November 30, 2024 and 2023.
Amortized goodwill and other intangible assets consisted of the following:
| (in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount at Novem
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the amortization amount for AutoClerk's developed technology was $(1,266) in thousands as of November 30. The gross carrying amount for AutoClerk's developed technology was $1,900 in thousands, resulting in a net carrying amount of $634 in thousands.
This means that Best Western allocated $1.9 million to the developed technology of AutoClerk and has already expensed $1.266 million of that value through amortization. The remaining book value of the technology is $634,000. Amortization is the systematic reduction of the book value of an intangible asset over its useful life.
For a prospective Best Western franchisee, this information provides insight into how Best Western values and accounts for its technology assets. It demonstrates that Best Western recognizes the value of acquired technology and systematically accounts for it over time. This accounting practice can affect Best Western's reported profits and overall financial health, which could indirectly impact franchisees.