table_specific

What was the total amount of fees, dues, and assessments revenue for Best Western in 2023?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

ated Statements of Financial Position

| (in thousands) | | | |---|---|---| | 2024 | 2023 | | | Liability related to the loyalty program | $ 308,058 | $ 292,438 | | Affiliation fees received from hoteliers | 49,999 | 51,343 | | Total contract liabilities | $ 358,057 | $ 343,781 | See accompanying notes to consolidated fin

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

What This Means (2025 FDD)

According to Best Western's 2025 Franchise Disclosure Document, the total revenue from fees, dues, and assessments for the year 2023 was $293,536,000. This figure represents the income Best Western generated from its members, soft brand licensees, SureStay franchisees, and WorldHotels licensees through various fees, dues, and assessments. These charges compensate Best Western for providing services such as hotel support, marketing, and licensing the use of their brand names.

This revenue stream is a critical component of Best Western's financial operations. The fees and assessments are established by the membership and the Board of Directors. These fees include monthly charges for advertising, sales, marketing, and technology expenses, as well as annual dues for continuing membership. These monthly fees and assessments are recognized as revenue in the same month the services are provided, while annual dues are recognized ratably over the year to which the membership applies.

For a prospective franchisee, understanding the structure and amount of these fees is crucial. These fees directly impact the franchisee's operating costs and profitability. The FDD also details how affiliation fees from Best Western branded hotels are recognized over the hotelier's expected life or the initial contract term, and how SureStay franchisee initial fees are recognized over the initial term of the franchise agreement. Knowing these revenue recognition methods helps franchisees understand how Best Western accounts for these fees and how they contribute to the company's overall financial health.

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.