What was the total current state income tax provision for Best Western in 2023 (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 state income tax provision for 2023 was $5,135,000 (in thousands). This figure is part of the broader income tax provision, which also includes federal and foreign income taxes. The state income tax provision reflects the amount of income taxes Best Western expects to pay to various state governments for the year.
For a prospective Best Western franchisee, understanding these figures provides insight into the financial obligations and tax strategies of the parent company. While franchisees are responsible for their own business's tax obligations, the financial health and tax planning of the franchisor can indirectly impact the support and resources available to franchisees. A significant state income tax provision suggests that Best Western has taxable income in those states, which could be a positive indicator of business activity.
It's important to note that this is just one component of Best Western's overall financial picture. Franchisees should consider this information in conjunction with other financial data, such as revenues, expenses, and liabilities, to gain a comprehensive understanding of the company's financial stability. Additionally, prospective franchisees may want to inquire about the specific state tax laws that apply to Best Western's operations and how these laws could affect their own franchise businesses.
In the franchise industry, it is common for franchisors to disclose their income tax provisions as part of their financial statements. This transparency helps potential franchisees assess the financial health and stability of the franchise system. However, the specific details and presentation of this information can vary depending on the franchise and accounting practices.