What was the amount of provisions, in thousands, for Best Western in 2023?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2023 | 2022 |
|---|---|---|
| REVENUES: | ||
| Fees, dues and assessments | $ 293,536 | $ 276,766 |
| Program revenues | 180,273 | 165,915 |
| Other revenues | 62,787 | 51,199 |
| TOTAL REVENUES | 536,596 | 493,880 |
| EXPENSES: | ||
| Compensation, taxes and benefits | 197,303 | 175,005 |
| Advertising and promotion | 121,415 | 105,950 |
| Depreciation and amortization | 18,162 | 14,748 |
| General and administrative | 88,222 | 77,477 |
| Program cost of sales | 19,540 | 16,531 |
| TOTAL EXPENSES | 444,642 | 389,711 |
| Net realized and unrealized gains (losses) on investments | 12,414 | (1,391) |
| Interest and dividend income, and interest expense, net | 12,150 | 2,160 |
| Excess of revenues over expenses before income taxes | 116,518 | 104,938 |
| Income tax provision | (27,498) | (17,169) |
| Excess of revenues over expenses | 89,020 | 87,769 |
| Excess of expenses over revenues | ||
| attributable to non-controlling interests | 299 | 310 |
| EXCESS OF REVENUES OVER EXPENSES | ||
| ATTRIBUTABLE TO BEST WESTERN INTERNATIONAL, INC. | $ 89,319 | $ 88,079 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the income tax provision for Best Western in 2023 was ($27,498) in thousands. This figure represents the amount of income tax that Best Western has accounted for as an expense in its financial statements for the fiscal year 2023. It is important to note that this is an expense, and is therefore represented as a negative number.
For a prospective franchisee, understanding the income tax provision is crucial for assessing the overall financial health and profitability of Best Western. While franchisees do not directly pay Best Western's income taxes, the financial stability of the parent company can impact the support and services available to franchisees. A lower tax provision might indicate higher profitability, which could translate to more resources for brand development, marketing, and franchisee support.
It is also important to consider that the income tax provision can be influenced by various factors, such as changes in tax laws, accounting practices, and business strategies. Therefore, it is advisable for potential franchisees to consult with a financial advisor to fully understand the implications of the income tax provision and other financial metrics presented in the FDD.