What was the excess of revenues over expenses for Best Western in 2023 (in thousands)?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
nds) | Amortized cost | Fair Value | |---|---|---| | Due in one year or less | $ 11,691 | $ 11,643 | | Due after one year through five years | 46,351 | 46,070 | | Due after five years through ten years | 24,421 | 23,749 | | Due after ten years | 95,735 | 91,575 | | Total | $ 178,198 | $ 173,037 | See accompanying notes to consolidated financial statements.
Consolidated Statements of Revenues and Expenses
| (in thousands) | 2023 | Years Ended November 30, 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) |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the excess of revenues over expenses attributable to Best Western International, Inc. was $89,319,000 in 2023. This figure represents the company's profitability before considering other comprehensive revenues and expenses. It's a key indicator of Best Western's financial performance and operational efficiency for that year.
Specifically, this number is calculated by subtracting total expenses ($444,642,000) from total revenues ($536,596,000), and then adjusting for net realized and unrealized gains on investments ($12,414,000), interest and dividend income, and net interest expense ($12,150,000), income tax provision (which is a deduction of $27,498,000), and the excess of expenses over revenues attributable to non-controlling interests ($299,000). This provides a comprehensive view of Best Western's financial activities and the resulting profit or loss.
Prospective franchisees should note that this excess revenue figure reflects Best Western International, Inc.'s overall financial health as a brand. While it doesn't directly translate into an individual franchisee's profitability, it indicates the financial stability and resources of the parent company. This can be an important factor in assessing the long-term viability and support that Best Western can provide to its franchisees.
It is important to consider this figure in conjunction with other financial data provided in the FDD, such as revenue sources (fees, dues, assessments, program revenues, etc.) and expense categories (compensation, advertising, administrative costs, etc.) to gain a more complete understanding of Best Western's financial operations. Additionally, prospective franchisees should compare these figures with previous years to identify trends and assess the company's financial performance over time.