What was the provision for doubtful accounts for Best Western in 2022 (in thousands)?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2023 | 2022 |
|---|---|---|
| REVENUES: | ||
| Fees, dues and assessments | $ 293,536 | $ 276,766 |
| Program revenues | 180,273 | 165,915 |
| Other revenues | 62,787 | 51,199 |
| TOTAL REVENUES | 536,596 | 493,880 |
| EXPENSES: | ||
| Compensation, taxes and benefits | 197,303 | 175,005 |
| Advertising and promotion | 121,415 | 105,950 |
| Depreciation and amortization | 18,162 | 14,748 |
| General and administrative | 88,222 | 77,477 |
| Program cost of sales | 19,540 | 16,531 |
| TOTAL EXPENSES | 444,642 | 389,711 |
| Net realized and unrealized gains (losses) on investments | 12,414 | (1,391) |
| Interest and dividend income, and interest expense, net | 12,150 | 2,160 |
| Excess of revenues over expenses before income taxes | 116,518 | 104,938 |
| Income tax provision | (27,498) | (17,169) |
| Excess of revenues over expenses | 89,020 | 87,769 |
| Excess of expenses over revenues | ||
| attributable to non-controlling interests | 299 | 310 |
| EXCESS OF REVENUES OVER EXPENSES | ||
| ATTRIBUTABLE TO BEST WESTERN INTERNATIONAL, INC. | $ 89,319 | $ 88,079 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
Based on the 2025 Best Western FDD, the document does not specifically list a "provision for doubtful accounts" as a line item in its financial statements. However, the FDD does include a consolidated statement of revenues and expenses. For the year 2022, Best Western had total revenues of $493,880,000 and total expenses of $389,711,000 (both figures in thousands). The excess of revenues over expenses before income taxes was $104,938,000, with an income tax provision of $(17,169,000). The excess of revenues over expenses attributable to Best Western International, Inc. was $88,079,000.
A prospective franchisee should be aware that the absence of a specific line item for doubtful accounts does not necessarily mean that Best Western has no such provisions. These provisions might be included within other expense categories like "General and administrative" expenses, which totaled $77,477,000 in 2022. It is common accounting practice for companies to account for potential uncollectible accounts, as this provides a more accurate picture of their financial health.
To gain a clearer understanding, a potential Best Western franchisee should consider asking Best Western for more detailed financial statements. Specifically, they should inquire about how Best Western accounts for doubtful accounts, if such provisions are made, and within which line items these provisions are included. Understanding these accounting practices can help a franchisee better assess the financial stability and management of Best Western.