Are the Best Western financial statements audited by an independent auditor?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
rict V
Mahmood (Mike) Merchant
Representing District VI
Steven Angeline
Representing District VII
Corporate Officers
Lawrence M. Cuculic
President and Chief Executive Officer
Mark Straszynski
Senior Vice President and Chief Financial Officer
Jay Pricher
Senior Vice President, General Counsel and Secretary
Principal Place of Business 6201 North 24th Parkway Phoenix, Arizona 85016-2023, USA (602) 957-4200
Independent Auditors
Ernst & Young LLP
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, 2023 and 2022, 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, 2023 and 2022, 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.
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 consolidated financial statements are indeed audited by an independent auditor. Specifically, the financial statements as of November 30, 2024 and 2023, which include the consolidated statements of financial position, revenues and expenses, cash flows, and changes in net assets, were audited. The audit was conducted by Ernst & Young LLP.
The auditor's report expresses an opinion that the financial statements present fairly the financial position of Best Western as of November 30, 2024 and 2023, and the results of its operations and cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. This opinion provides assurance to potential franchisees regarding the reliability of the financial information presented.
The audit was performed 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 responsibilities include describing the responsibilities of management for the financial statements, which includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement. The auditor also evaluates whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern for one year after the date that the financial statements are available to be issued.
For a prospective Best Western franchisee, this independent audit is a positive sign. It suggests that Best Western's financial reporting is transparent and reliable, which can help in making an informed investment decision. Franchisees should review the full audited financial statements and the auditor's opinion, along with the accompanying notes, to gain a comprehensive understanding of Best Western's financial health and performance.