What was the amount of amortizing goodwill related to WorldHotels for Best Western?

According to Best Western's 2025 Franchise Disclosure Document, the amortizing goodwill related to WorldHotels was $4,554,000 before amortization, $(1,211,000) for amortization, resulting in $3,343,000 as of November 30, 2024. This indicates the initial goodwill established from the WorldHotels acquisition and the amount that has been expensed to date through amortization.

For a prospective Best Western franchisee, this information provides insight into how Best Western manages its intangible assets and acquisitions. Goodwill, in accounting terms, represents the value of a company's brand name, customer relationships, intellectual property, and any other intangible assets that allow it to generate more revenue than its tangible assets would allow. The amortization of goodwill is a non-cash expense that reduces the company's reported earnings over time.

The fact that Best Western amortizes goodwill over a 10-year period, as stated elsewhere in the document, reflects an accounting choice available to private companies. This amortization expense impacts Best Western's financial statements, and while it doesn't directly affect the operations of a franchisee's hotel, it does provide transparency into the financial management of the Best Western organization. Understanding these accounting practices can help a franchisee assess the financial stability and management approach of the franchisor.