When does the Affiliation Fee for a Best Western franchise become non-refundable?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
the Board but the prospective Member does not accept the conditions of approval, the $4,000 Impact Study Fee will not be refunded.
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- All prospective Members must complete an Application for Membership for a hotel and pay a $4,000 Evaluation Fee and an Affiliation Fee, the amount of which will depend on the number of rooms at the Property. Please note, if you are a new Member purchasing your Membership from an existing Member, you will be charged a transfer fee in lieu of an Entrance Fee, which will equal 50% of our then current Entrance Fee. If a prospective Member's Application for Membership is either (i) presented to the Board by the Application Deadline and the Application for Membership is not approved or (ii) not presented to the Board by the Application Deadline due to the actions of the prospective Member, the entire Affiliation Fee will be refunded. The Affiliation Fee otherwise becomes non-refundable at the time of signing the Members
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Affiliation Fee becomes non-refundable at the time of signing the Membership Agreement. However, there are some exceptions. If a prospective member's Application for Membership is either not approved by the Board by the Application Deadline, or not presented to the Board by the Application Deadline due to the actions of the prospective member, the entire Affiliation Fee will be refunded.
The Affiliation Fee is $45,000 for properties with 50 rooms or less, with an additional $200 for each room up to a maximum of 1,000 rooms. This fee, along with a $4,000 Evaluation Fee, must be paid when completing the Application for Membership. Prospective franchisees should be aware of these conditions regarding the refundability of the Affiliation Fee before signing the Membership Agreement.
It is important for prospective Best Western franchisees to understand the specific circumstances under which the Affiliation Fee is refundable, as outlined in the FDD. Paying close attention to deadlines and ensuring the application is complete and submitted on time is crucial. Additionally, carefully reviewing the Membership Agreement before signing will help franchisees avoid any misunderstandings regarding the non-refundable nature of the fee after the agreement is signed.