Are the financial statements for Bw Premier Collection presented on a consolidated basis?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
(b) Principles of Consolidation
The consolidated financial statements include the accounts of the Company, our wholly owned subsidiaries and entities in which the Company has a controlling financial interest, including variable interest entities where the Company is the primary beneficiary.
The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other ownership interests. If the entity is considered to be a variable interest entity, the Company determines whether the Company is the primary beneficiary, and then consolidates those variable interest entities for which the Company has determined that the Company is the primary beneficiary.
All significant intercompany transactions and balances are eliminated in consolidation.
Source: Item 21 — Financial Statements (FDD page 54)
What This Means (2025 FDD)
According to the 2025 FDD, the financial statements for Best Western International, Inc., which includes Bw Premier Collection, are presented on a consolidated basis. This means that the financial results of the parent company, its wholly-owned subsidiaries, and entities in which the company has a controlling financial interest are combined into one set of financial statements. This approach provides a comprehensive view of the entire economic entity's financial performance and position.
The principles of consolidation followed by Best Western International, Inc. include the accounts of the company, its wholly-owned subsidiaries, and entities in which the company has a controlling financial interest, including variable interest entities where the company is the primary beneficiary. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other ownership interests. All significant intercompany transactions and balances are eliminated during the consolidation process.
For a prospective Bw Premier Collection franchisee, the consolidated financial statements offer insights into the overall financial health and stability of the entire Best Western International, Inc. organization. This can be beneficial as it reflects the financial performance of not just the parent company but also its various subsidiaries and entities, giving a more accurate picture of the financial resources available to support the franchise system. Understanding the consolidated nature of the financials can help franchisees assess the financial risks and opportunities associated with investing in a Bw Premier Collection franchise.