In what year did Best Western have the largest net decrease in licensed outlets?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at the Start of Year | Outlets at the End of Year | Net Change |
|---|---|---|---|---|
| Licensed | 2022 | 1,878 | 1,855 | -23 |
| 2023 | 1,855 | 1,801 | -54 | |
| 2024 | 1,801 | 1,768 | -33 | |
| Company Owned | 2022 | 0 | 2 | +2 |
| 2023 | 2 | 2 | 0 | |
| 2024 | 2 | 2 | 0 | |
| Total Outlets | 2022 | 1,878 | 1,857 | -21 |
| 2023 | 1,857 | 1,803 | -54 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 93–107)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the year with the largest net decrease in licensed outlets was 2023. During that year, the number of licensed outlets decreased by 54. This is calculated from the start of the year, when there were 1,855 licensed outlets, to the end of the year, when there were 1,801.
This information is crucial for potential franchisees as it provides insight into the stability and growth of the Best Western brand. A decrease in the number of licensed outlets could indicate various factors, such as closures, terminations, or non-renewals of franchise agreements. While a single year's decrease may not be alarming, consistent declines could signal underlying issues within the franchise system.
Prospective franchisees should investigate the reasons behind the net decrease in 2023. Understanding whether the closures were concentrated in specific regions or due to particular circumstances can help assess the overall health and attractiveness of a Best Western franchise. It's also important to compare these figures with industry trends to determine if the decrease is specific to Best Western or reflective of broader market conditions.
It is also worth noting that while the number of licensed outlets decreased, the number of company-owned outlets increased by 2 in 2022, but remained the same in 2023 and 2024. This could indicate a strategic shift by Best Western towards company-owned locations, which might impact the support and resources available to franchisees.