For Best Western, what was the total revenue from fees, dues, and assessments in 2023?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
nds) | Amortized cost | Fair Value | |---|---|---| | Due in one year or less | $ 11,691 | $ 11,643 | | Due after one year through five years | 46,351 | 46,070 | | Due after five years through ten years | 24,421 | 23,749 | | Due after ten years | 95,735 | 91,575 | | Total | $ 178,198 | $ 173,037 | See accompanying notes to consolidated financial statements.
Consolidated Statements of Revenues and Expenses
| (in thousands) | 2023 | Years Ended November 30, 2022 |
|---|---|---|
| REVENUES: | ||
| Fees, dues and assessments | $ 293,536 | $ 276,766 |
| Program revenues | 180,273 | 165,915 |
| Other revenues | 62,787 | 51,199 |
| TOTAL REVENUES | 536,596 | 493,880 |
| EXPENSES: | ||
| Compensation, taxes and benefits | 197,303 | 175,005 |
| Advertising and promotion | 121,415 | 105,950 |
| Depreciation and amortization | 18,162 | 14,748 |
| General and administrative | 88,222 | 77,477 |
| Program cost of sales | 19,540 | 16,531 |
| TOTAL EXPENSES | 444,642 | 389,711 |
| Net realized and unrealized gains (losses) on investments | 12,414 | (1,391) |
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 various membership and franchise agreements, including monthly fees, annual dues, and other assessments charged to its members, soft brand licensees, SureStay franchisees, and WorldHotels licensees. These fees are designed to compensate Best Western for the services it provides, such as hotel support, marketing, and the licensing of its brand names.
For a prospective Best Western franchisee, this number highlights the scale of the financial transactions within the Best Western system. It demonstrates the collective revenue generated from the network of hotels operating under the Best Western brand. Understanding the components of these fees, such as monthly fees based on a percentage of property room revenue (PRR), advertising assessments, and technology assessments, is crucial for franchisees to forecast their ongoing financial obligations to Best Western.
The FDD also details how these fees and dues are established and adjusted. The Board of Directors sets the fees, and increases are generally limited to the greater of 2% or the rate of inflation. This provides some predictability for franchisees in budgeting for these expenses. Additionally, the document specifies that if a member resigns or is terminated, all outstanding fees and dues become immediately payable, which is an important consideration for the financial planning of a Best Western property owner.
It is important to note that the affiliation fee revenues for 2023 were $9.8 million. This is separate from the total revenue from fees, dues, and assessments. The affiliation fees are recognized over the hotelier's expected life as a Best Western branded hotel or over the initial contract term.