What method of accounting for income taxes does Surestay Hotel By Best Western utilize?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
effective income tax rate and presents the associated income tax provision:
| (in thousands) | 2023 | 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) |
| Interest and dividend income, and interest expense, net | 12,150 | 2,160 |
| Excess of revenues over expenses before income taxes | 116,518 | 104,938 |
| Income tax provision | (27,498) | (17,169) |
| Excess of revenues over expenses | 89,020 | 87,769 |
| Excess of expenses over revenues | ||
| attributable to non-controlling interests | 299 | 310 |
| EXCESS OF REVENUES OVER EXPENSES | ||
| ATTRIBUTABLE TO BEST WESTERN INTERNATIONAL, INC. |
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Surestay Hotel By Best Western's parent company, Best Western International, Inc., provides information regarding its income tax provision. For the year ending November 30, 2023, the income tax provision was reported as ($27,498) in thousands, and for the year ending November 30, 2022, it was ($17,169) in thousands. This indicates the amount of income taxes the company has provided for in its financial statements.
Surestay Hotel By Best Western franchisees should be aware that these figures reflect the parent company's overall tax situation, which may not directly correlate with the accounting methods franchisees will need to adopt for their own individual businesses. Franchisees are responsible for managing their own income taxes, and the FDD does not specify the exact accounting method franchisees must use.
Prospective franchisees should consult with a financial advisor or tax professional to determine the most appropriate accounting method for their specific circumstances and to ensure compliance with all applicable tax laws and regulations. Understanding the tax implications of operating a Surestay Hotel By Best Western franchise is crucial for financial planning and profitability.