What was the amortized amount of Best Western's AutoClerk acquired customers as of November 30?
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, as of November 30, the net carrying amount for AutoClerk's acquired customers was $433,000. This figure represents the initial gross carrying amount of $1,500,000 less accumulated amortization of $1,067,000.
This information is relevant to potential Best Western franchisees because it provides insight into the financial management and asset valuation practices of Best Western, particularly concerning its subsidiary AutoClerk. AutoClerk, as a property management system, is an integral part of Best Western's operations, and understanding the amortization of its acquired customer base can offer a glimpse into how Best Western accounts for and values its technology-related assets.
The amortization of acquired customers reflects the gradual expensing of the value of customer relationships over time. In this case, the initial value of AutoClerk's acquired customers was $1.5 million, which has been reduced by $1,067,000 through amortization. The remaining $433,000 represents the unamortized value of these customer relationships as of the specified date. This accounting practice aligns with the principle of matching expenses with revenues, as the value of these customer relationships is recognized over the period they contribute to Best Western's revenue generation.
It is important to note that these figures are based on Best Western's accounting policies and estimates, which may be subject to change. Prospective franchisees should consider these figures in the context of Best Western's overall financial health and strategic direction. Further due diligence, including consultation with financial advisors, is recommended to fully understand the implications of these figures for their investment decision.