What is included in Exhibit E regarding the Surestay Hotel By Best Western franchise?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit E contains the audited consolidated financial statements (and the related notes) of Best Western International as of and for the years ended November 30, 2024, November 30, 2023 and November 30, 2022.
Best Western International absolutely and unconditionally guarantees to assume our duties and obligations under the Franchise Agreement should we become unable to perform our duties and obligations under the Franchise Agreement. Best Western International's guaranty of performance is included in Exhibit E.
Source: Item 21 — Financial Statements (FDD pages 87–88)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, Exhibit E contains the audited consolidated financial statements, including related notes, of Best Western International as of and for the years ended November 30, 2024, November 30, 2023, and November 30, 2022. These financial statements provide a detailed overview of Best Western International's financial performance over the past three years.
Additionally, Exhibit E includes Best Western International's guaranty of performance. This guaranty signifies that Best Western International will assume the duties and obligations of Surestay Hotel By Best Western under the Franchise Agreement if Surestay Hotel By Best Western becomes unable to fulfill its obligations.
For a potential Surestay Hotel By Best Western franchisee, this exhibit is crucial for assessing the financial stability and backing of both Surestay Hotel By Best Western and its parent company, Best Western International. The audited financial statements offer insights into the financial health of the overall organization, while the guaranty of performance provides a level of security, ensuring that Best Western International stands behind the franchise agreement.