What was the value of Best Western's operating leases in 2025?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
ract assets | 11,903 | 12,305 | | Total contract assets | $ 12,860 | $ 13,269 | For operating leases, the weighted average remaining lease term is 2.9 years and the weighted average discount rate is 3.58%.
November 30, 2024
Minimum future rentals on non-cancelable operating leases, having an initial or remaining term
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the value of operating leases for the year 2025 was $731. The document also provides figures for subsequent years, including $333 in 2026, $264 in 2027, $207 in 2028, and $50 for 2029 and thereafter. The total minimum lease payments amount to $1,585. After deducting interest of $84, the net present value of the minimum lease payments is $1,501.
These figures provide insight into Best Western's long-term lease obligations. Potential franchisees can use this information to understand the financial commitments associated with property leases and factor these costs into their overall business plan. Understanding the breakdown of lease payments over the coming years can help franchisees forecast expenses and manage their cash flow effectively.
It's important to note that these figures represent minimum lease payments and do not include any potential variable costs or additional expenses that may be associated with the leases. Prospective franchisees should carefully review the terms of their lease agreements and consult with financial advisors to fully understand their obligations and potential financial risks.