What was the total current federal income tax provision for Best Western in 2022 (in thousands)?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
and other current assets consisted of the following:
| (in thousands) | 2023 | 2022 |
|---|---|---|
| Prepaid expenses and other current assets | $ 17,060 | $ 16,301 |
| Current contract assets | 957 | 964 |
| Total | $ 18,017 | $ 17,265 |
(5) Income Taxes
The income tax provision for the years ended N
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the total current federal income tax provision for the year 2022 was $15,966 (in thousands). This figure represents the amount of federal income taxes that Best Western expects to pay for the current year, based on its taxable income. It's important to note that this is just the federal portion and does not include state or foreign income taxes.
For a prospective franchisee, understanding Best Western's tax obligations can provide insight into the financial health and stability of the organization. While franchisees are responsible for their own business taxes, the overall tax strategy and burden of the franchisor can indirectly affect the franchise system. For instance, significant changes in tax laws or the franchisor's tax liabilities could potentially impact fees or services provided to franchisees.
It is also important to note that this figure is a provision, which is an estimate of income taxes due. The actual amount could differ when the final tax returns are filed. Additionally, the FDD also lists deferred federal income tax for 2022 as $1,019 (in thousands). Deferred income taxes reflect the future tax consequences of events that have been recognized in the financial statements or tax returns. Reviewing both current and deferred tax figures provides a more complete picture of Best Western's tax situation.