What was the total cost of Best Western's furniture and equipment in 2023, in thousands of dollars?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2024 | 2023 | |
|---|---|---|---|
| Property and equipment, at cost: | |||
| Furniture and equipment | $ 27,553 | $ 27,359 | |
| Buildings | 20,030 | 19,815 | |
| Land | 2,335 | 2,335 | |
| Leasehold improvements | 2,282 | 2,160 | |
| Land improvements | 1,234 | 1,234 | |
| Work in process | 135 | 56 | |
| Property and equipment | 53,569 | 52,959 | |
| Less accumulated depreciation | (44,115) | (43,795) | |
| Property and equipment, net | 9,454 | 9,164 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the total cost of furniture and equipment in 2023 was $27,359,000. This figure is part of the 'Property and equipment, at cost' section, which also includes buildings, land, leasehold improvements, land improvements, and work in process. The total 'Property and equipment' before accumulated depreciation was $52,959,000 in 2023. After deducting accumulated depreciation of $43,795,000, the net value of property and equipment was $9,164,000.
This information is crucial for potential Best Western franchisees as it provides insight into the scale of investment in physical assets. The cost of furniture and equipment represents a significant portion of the overall property and equipment expenses. Understanding these costs helps franchisees plan their initial investment and budget for ongoing replacements and upgrades.
Additionally, the FDD provides figures for 2024, allowing a comparison of these costs over time. For instance, the cost of furniture and equipment increased from $27,359,000 in 2023 to $27,553,000 in 2024. This increase could be due to inflation, upgrades, or expansion. Monitoring these trends is essential for franchisees to anticipate future capital expenditures and manage their finances effectively.
Prospective franchisees should carefully review these figures in conjunction with other financial disclosures in the FDD to gain a comprehensive understanding of the investment requirements and potential financial performance of a Best Western franchise. Consulting with financial advisors and existing franchisees can also provide valuable insights into managing these costs and maximizing profitability.