Regarding Best Western's consolidated financial statements, what could cause actual results to differ from the company's estimates?

According to Best Western's 2025 Franchise Disclosure Document, the company's management uses estimates and assumptions when reporting assets, liabilities, revenues, and expenses to prepare its consolidated financial statements according to Generally Accepted Accounting Principles (GAAP). Because these figures are based on estimates, the actual financial results for Best Western could differ from these initial estimates. This is a standard disclosure for audited financial statements.

For a prospective Best Western franchisee, this means that the financial statements provided are the company's best assessment at the time they were prepared, but are not a guarantee of future performance. Factors that are difficult to predict, such as economic conditions, market changes, or unforeseen expenses, could cause Best Western's actual financial results to deviate from their estimates.

It is important for potential franchisees to understand that all financial statements involve some level of estimation and uncertainty. While the financial statements are audited by an independent firm (Ernst & Young LLP), the auditor's opinion only states that the statements are presented fairly in accordance with GAAP. The auditor does not guarantee the accuracy of the estimates themselves, only that the estimates are reasonable based on the information available at the time. Therefore, a prospective franchisee should consider these potential variations when evaluating the financial health and stability of Best Western.