Why were other revenues reclassified to interest and dividend income, and interest and other expense, net in the Best Western Consolidated Statements of Revenues and Expenses for the year ended November 30, 2023?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
cial statements in conformity with Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. In our opinion,
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, $2.2 million in other revenues were reclassified to interest and dividend income, and interest and other expense, net in the Consolidated Statements of Revenues and Expenses for the year ended November 30, 2023. This reclassification was done to conform with the current year presentation.
For a prospective Best Western franchisee, this reclassification itself doesn't have a direct operational impact. However, it reflects a change in how Best Western presents its financial information. Understanding these changes is important for franchisees when reviewing and comparing financial statements across different periods.
It's essential for potential franchisees to pay attention to how revenue and expenses are categorized, as this can affect the apparent profitability of different aspects of Best Western's operations. While the total revenue remains the same, the reclassification provides more transparency into the sources of income, specifically highlighting interest and dividend income separately. Franchisees should seek clarification from Best Western regarding any further changes in accounting practices to ensure they fully understand the financial statements.