What was the total cost of developed computer software for Best Western as of November 30, 2023?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- 325-7800 | | B/W Edgewater Inn VIKAT INC | Jitendra Patel 1730 S Ridgewood Ave | Edgewater Florida | 32132-3614 | (386) 427-7101 | The Company has elected the private-company alternative to amortize goodwill over 10 years. Amortization expense for goodwill was approximately $0.8 million and $0.8 million for the years ended November 30, 2023 and 2022, respectively, and is estimated to be approximately $0.8 million annually for fiscal years ended 2024 through 2028.
Acquired customers and developed technology are definite-life intangible assets, and as such, amortization e
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
The 2025 Best Western Franchise Disclosure Document (FDD) does not explicitly state the total cost of developed computer software as of November 30, 2023. However, it does mention amortization expenses related to acquired customers and developed technology, which are considered definite-life intangible assets.
According to the FDD, amortization expense for these definite-life intangible assets was approximately $0.4 million for the years ended November 30, 2023, and 2022. This expense is estimated to remain around $0.4 million annually for the fiscal years ending 2024 through 2026. These assets have an amortization period ranging from 7.5 to 10 years, depending on the asset type.
While the FDD provides information on amortization expenses, it does not detail the initial or total cost of the developed computer software. A prospective franchisee should ask Best Western for specific figures related to the initial investment in software development to understand the full financial implications. This information would be essential for assessing the long-term value and cost-effectiveness of the technology assets.