By how much did Best Western's accounts payable and accrued liabilities change from 2023 to 2024?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| LIABILITIES AND NET ASSETS | ||
|---|---|---|
| CURRENT LIABILITIES: | ||
| Accounts payable and accrued liabilities | $ 81,708 | $ 78,042 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the company's accounts payable and accrued liabilities decreased from 2023 to 2024. In 2023, the total was $81,708,000, while in 2024, it was $78,042,000. This represents a decrease of $3,666,000.
Accounts payable generally refers to short-term debts a company owes to its suppliers or vendors. Accrued liabilities are expenses that have been incurred but not yet paid, such as wages, salaries, or taxes. Monitoring these figures can provide insight into Best Western's short-term financial obligations and its ability to manage its current liabilities.
A prospective Best Western franchisee should consider these figures in the context of the company's overall financial health. A decrease in accounts payable and accrued liabilities could indicate improved financial management or changes in payment terms with suppliers. However, it's essential to investigate the reasons behind these changes to fully understand their implications.
Franchisees might want to ask Best Western about the specific factors that contributed to the decrease in accounts payable and accrued liabilities. Understanding the underlying reasons can help franchisees assess the financial stability and management practices of the franchisor.