table_specific

What was the net value of Best Western's computer software in 2023?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

Best Western has provided or will provide access to computer software that is to be used by the Property to access Best Western supporting applications ("Software"). Software programs are copyrighted by Best Western or licensed to Best Western by third parties. Member agrees to use the Software only for reservation communications with Best Western's reservations systems and with other Members, and for other business purposes relating to the operation of the Property as a Best Western® branded hotel. Member shall not copy, allow to be copied, or disclose any of the Software programs. Member will abide with all licensing and use terms and conditions of any Software provided. Such terms are available upon request.

    1. Software may be upgraded by Best Western or its designee from time to time, and Member may be charged an upgrade fee.
    1. In the event of failure or interruption of reservation services, it is a Member's responsibility to participate in the troubleshooting process. Best Western shall, in its sole and absolute discretion, make all final problem determinations and may dispatch technical resources as needed to achieve problem resolution.
    1. All Software shall be deleted or returned upon demand of Best Western or upon resignation by Member, cancellation or termination of this Agreement, whichever is sooner. Failure to do so will result in a charge for the cost of the Software to the Property's Best Western account.
    1. Member hereby assumes all risks and liabilities, whether covered by insurance or not, for loss or damage to or destruction of any Software. Member shall replace, at its expense, any Software which is lost, damaged, or destroyed.

Source: Item 23 — Receipts (FDD pages 108–413)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, the net value of Best Western's computer software in 2023 is not explicitly stated. However, the FDD does mention software in the context of member usage and related expenses. Specifically, Best Western provides access to computer software for accessing supporting applications, with the software being copyrighted by Best Western or licensed to them. Members are required to use this software for reservation communications and other business purposes related to operating a Best Western branded hotel.

The FDD indicates that Best Western may upgrade the software from time to time, and members may be charged an upgrade fee. In case of service interruptions, members are expected to participate in troubleshooting. Upon termination of the agreement, members must delete or return all software, or they will be charged for its cost. Members also assume all risks and liabilities for any loss or damage to the software and are responsible for replacing it at their expense.

While the FDD details the responsibilities and potential costs associated with the software, it does not provide a specific valuation of the software assets on Best Western's balance sheet. For a prospective franchisee, this means that while the cost of software upgrades and replacements are potential expenses, the overall financial impact of the software on Best Western's financials is not transparent from the provided excerpts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.