What was the amortized value of AutoClerk's developed technology for Best Western?
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 amortized value of AutoClerk's developed technology is detailed in Item 23, which discusses receipts and accounting policies. As of November 30, 2024, the gross carrying amount of AutoClerk's developed technology was $1,900,000, with accumulated amortization of $1,266,000. This results in a net carrying amount of $634,000.
In 2019, Best Western acquired AutoClerk, a property management system. The developed technology was initially valued at $1.9 million. The company amortizes these assets over a period ranging from 7.5 to 10 years, depending on the asset type. This amortization reflects the decline in value of the technology over its useful life, which is a standard accounting practice.
For Best Western franchisees, understanding these figures is important because it provides insight into how the company manages and values its assets. The amortization of developed technology indicates that Best Western recognizes the limited lifespan and declining value of technology assets, which can influence decisions related to technology investments and upgrades. The consistent amortization expense of approximately $0.4 million annually for definite-life intangible assets, including developed technology, suggests a predictable expense for these assets in the coming years.