What was the total amount of fees, dues, and assessments revenue for Best Western in 2023 (in thousands)?
Best_Western Franchise · 2025 FDDAnswer 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 membership agreements with members, soft brand licensees, SureStay franchisees, and WorldHotels licensees. These fees compensate Best Western for providing hotel support and marketing services, as well as licensing the use of their brand names.
For a prospective franchisee, this indicates the scale of the revenue generated through the various fees and assessments that Best Western charges its properties. Understanding the different types of fees, such as monthly fees, annual dues, advertising assessments, and technology assessments, is crucial for assessing the ongoing costs of operating a Best Western franchise. These fees are used to cover various services, including advertising, sales and marketing, technology expenses, and brand support.
The FDD also details how these fees are recognized as revenue. Monthly fees and assessments are recognized in the same month the services are provided, while annual dues are recognized ratably over the year. Affiliation fees from Best Western branded hotels are recognized on a straight-line basis over the hotelier's expected life as a Best Western branded hotel or over the initial contract term. This revenue recognition approach provides transparency into how Best Western accounts for its income from franchisees and members.
It's important for potential franchisees to carefully review the different types of fees and how they are calculated, as outlined in the Best Western Property Owner's Membership Agreement. Understanding the terms and conditions related to these fees, including when they are billed and payable, is essential for managing the financial aspects of the franchise. Additionally, franchisees should be aware of the potential for fee increases, such as the advertising assessment, which the Board of Directors can adjust annually within certain limits.