table_specific

For Best Western, what was the amortization amount for WorldHotels amortizing goodwill?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

Amortizing goodwill:
WorldHotels $ 4,554 $ (1,750) $ 2,804
AutoClerk 2,198 (953) 1,245
Amortizing other intangible assets:
Acquired customers:
AutoClerk 1,500 (867) 633
Developed technology:
AutoClerk 1,900 (1,029) 871
(in thousands) Amount Amortization November 30
--- --- --- --- ---
Amortizing goodwill:
WorldHotels $ 4,554 $ (1,211) $ 3,343
AutoClerk 2,198 (733) 1,465
Amortizing other intangible assets:
Acquired customers:
AutoClerk 1,500 (667) 833
Developed technology:
AutoClerk 1,900 (792) 1,108

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 WorldHotels amortizing goodwill is detailed in Item 23. The amortizing goodwill for WorldHotels was $1,211,000 as of November 30, 2023, and $1,750,000 as of November 30, 2024. These figures reflect the reduction in the goodwill value over time due to amortization.

Goodwill represents the intangible assets acquired when Best Western purchased WorldHotels. Since Best Western has elected the private-company alternative to amortize goodwill over 10 years, this means that the initial value of the goodwill is being systematically expensed over that period. The amortization expense is a non-cash expense that affects Best Western's financial statements.

For a prospective Best Western franchisee, understanding these accounting practices is important for assessing the overall financial health and stability of the Best Western organization. While franchisees are not directly impacted by these specific amortization expenses, the financial decisions and accounting practices of the parent company can influence the resources and support available to franchisees.

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.