What was the total amount of accounts payable and accrued liabilities for Best Western in 2022?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
mpany may request a credit advance up to $9 million at a variable interest rate based on the 1 month Secured Overnight Financing Rate ("SOFR") plus 0.75%. Interest is due and payable monthly, with the principal due and payable upon demand of the bank. The Company had no outstanding borrowings against this line of credit at November 30, 2023 and 2022.
(9) Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consisted of the following:
| (in thousands) | 2023 | 2022 | |------------------------------------------------------------------------------------------------------------------------
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the total amount of accounts payable and accrued liabilities for 2022 was $78,042,000. This figure represents the sum of several components, including accrued compensation and benefits, accounts payable, accrued liabilities, travel card liability, current construction loans payable, and current lease liability.
Specifically, the individual components that make up the $78,042,000 total include $26,034,000 in accrued compensation and benefits, $24,180,000 in accounts payable, $22,931,000 in accrued liabilities, $4,398,000 in travel card liability, and $499,000 in current construction loans payable. There was no current lease liability listed for 2022.
Understanding the breakdown of these liabilities can be useful for prospective franchisees. Accounts payable represents short-term obligations to suppliers and vendors, while accrued liabilities are expenses that have been incurred but not yet paid. Accrued compensation and benefits reflect unpaid wages, salaries, and benefits owed to employees. Travel Card liability likely relates to outstanding balances on travel-related credit cards. Current construction loans payable are the short-term portion of any construction-related debt. Monitoring these liabilities can provide insights into Best Western's short-term financial health and its ability to meet its immediate obligations.