What was the total value of Surestay Hotel By Best Western's long-term investments in 2023?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| 51,343 | 53,874 | | | Total contract liabilities | $ 343,781 | $ 346,867 | The Company has elected the private-company alternative to amortize goodwill over 10 years. Amortization expense for goodwill was approximately $0.8 million and $0.8 million for the years ended November 30, 2024 and 2023, respectively, and is estimated to be approximately $0.8 million annually for fiscal years ended 2025 through 2028.
Acquired customers and developed technology are definite-life intangible assets, and as such, amortization expense is calculated using a method that most appropriately reflects expected cash flows from these assets with an amortization period, ranging from 7.5 years to 10 years, depending on the type of asset. Amortization expense for definite-life intangible assets was approximately $0.4 million and $0.4 million for the years ended November 30, 2024 and 2023, respectively, and is estimated to be approximately $0.4 million annually for fiscal years ended 2025 and 2026.
Trademarks and trade names are indefinite-life assets as there is no foreseeable limit to the cash flows generated by these assets. The Company has determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these acquired trademarks and trade names and therefore are considered to be indefinite-lived intangible assets that are not subject to amortization. Trademarks and trade names value resulting from
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not possible to determine the total value of Surestay Hotel By Best Western's long-term investments in 2023. While the document includes financial information, such as affiliation fee revenues and amortization expenses, it does not explicitly state the total value of long-term investments. The FDD includes information regarding amortization of goodwill, acquired customers, developed technology, trademarks, and trade names, but these do not represent the totality of long-term investments.
Specifically, the excerpts discuss amortization expenses for goodwill and definite-life intangible assets for the years ended November 30, 2023, and 2022, as well as the valuation of trademarks and trade names resulting from the WorldHotels acquisition. However, these figures relate to specific types of assets and do not provide a comprehensive view of all long-term investments held by Surestay Hotel By Best Western.
To gain a clear understanding of Surestay Hotel By Best Western's long-term investment strategy and the total value of these investments, a prospective franchisee should directly request this information from the franchisor. This inquiry should clarify the types of assets included in long-term investments and their overall financial significance to the company.