Are the financial statements for Best Western audited?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Report of Independent Auditors
To the Board of Directors and Members of Best Western International, Inc.
Opinion
We have audited the consolidated financial statements of Best Western International, Inc. (the Company), which comprise the consolidated statements of financial position as of November 30, 2024 and 2023, and the related consolidated statements of revenues and expenses, other comprehensive revenues and expenses, cash flows and changes in net assets for the years then ended, and the related notes (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at November 30, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Source: Item 21 — Financial Statements (FDD page 107)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the company's financial statements are indeed audited by an independent auditor. Specifically, the FDD includes a "Report of Independent Auditors" which contains an opinion on the consolidated financial statements of Best Western International, Inc.
The audit covers the consolidated statements of financial position as of November 30, 2024 and 2023, along with the related consolidated statements of revenues and expenses, other comprehensive revenues and expenses, cash flows, and changes in net assets for the years then ended. The auditor's opinion states that the financial statements present fairly, in all material respects, the financial position of the company as of those dates, in accordance with accounting principles generally accepted in the United States of America.
The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards require the auditor to be independent of the company and to meet ethical responsibilities. The auditor's report also details the responsibilities of both Best Western's management and the auditor in relation to the financial statements, ensuring transparency and accountability.
For a prospective franchisee, this independent audit provides a level of assurance regarding the financial health and stability of Best Western. It confirms that the financial statements have been reviewed by an objective third party and comply with standard accounting practices. This can be a crucial factor in making an informed investment decision.