Where can I find the audited consolidated financial statements for Best Western?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT E TO FDD
FINANCIAL STATEMENTS
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.
Source: Item 21 — Financial Statements (FDD page 107)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the audited consolidated financial statements can be found in Exhibit E to the FDD. These statements include the report of independent auditors and cover consolidated financial positions, revenues, expenses, cash flows, and changes in net assets. For example, one report covers the financial years ending November 30, 2024, and 2023, while another covers the years ending November 30, 2023, and 2022.
These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The independent auditors evaluate and provide an opinion on the fairness of the presentation of Best Western's financial position. Management is responsible for the preparation and fair presentation of these financial statements, including the implementation and maintenance of internal controls.
Prospective franchisees should carefully review these financial statements and the accompanying notes to understand Best Western's financial performance and stability. Understanding the auditor's opinion and the scope of their audit can provide assurance regarding the reliability of the financial information. Additionally, examining the statements of revenues and expenses, cash flows, and changes in net assets will offer insights into how Best Western generates revenue, manages expenses, and utilizes its assets.
As a membership organization, Best Western provides these financial statements to its members to ensure transparency and accountability. Franchisees should analyze these documents to assess the financial health of the organization and its ability to support its members through various programs and services. Reviewing these statements is a crucial step in the due diligence process for potential Best Western franchisees.