How are 'Annual Dues' defined and established for Best Western members?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
y Development Incentive received based upon the number of months remaining in the Extended-Length Term.
- (2) For applications approved by the Board on and after January 1, 2018. Any Member or contingentlyapproved Applicant may resign from the Corporation at any time; but, if the Member resigns or is terminated, all fees, dues, and charges (to include liquidated damages) become immediately due and payable as detailed in the Membership Agreement. In addition, an Extended-Length Member shall pay to the Corporation a pro-rata amount of any Development Incentive received based upon the number of months remaining in the Extended-Length Term.
Section 6. Fees and Dues
- (A) The Board shall establish Entrance Fees to be paid by Applicants. Such Entrance Fees may be changed by the Board from time to time, but cannot be waived. The exception to this limitation is the offering and acceptance of a Development Incentive.
- (B) The Board shall establish Annual Dues to be paid by Members eligible for continuing Memberships. Annual Dues shall be established by the Board during each fiscal year for the succeeding fiscal year.
- (C) The Board shall establish Monthly Fees designed to cover the cost of providing services to Members. Monthly Fees for Members approved by the Board on or after January 1, 2018, shall be as determined by the Board annually, prior to the following fiscal year; however, if a Member has or Members collectively have a minimum of a fifty percent (50%) financial ownership interest in the Applicant Best Western Property at the time of the Board's application approval, the Monthly Fees shall be three and one-half percent (3 ½%) of Property Room Revenue. For the purpose of an Applicant being eligible for a Monthly Fee of three and one-half percent (3 ½%) of Property Room Revenue, the Members or Members must have each and all been a Member as of July 1, 2016.
- (D) Annual Dues, Monthly Fees, and assessments may be increased by the Board no more often than once in each fiscal year. No such annual increase shall exceed the lesser of (1) five percent (5%), or (2) the rate of inflation for the previous year, as measured by the United States Bureau of Labor Statistics Consumer Price Index (all items for all urban areas), unless a majority of all Members vote to approve a greater increase in accordance with Article III, Section 5
of these Bylaws.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, Annual Dues are defined and established by the Board of Directors for members eligible for continuing memberships. These dues are set by the Board each fiscal year for the succeeding fiscal year. The purpose of these fees, along with other fees and assessments, is to compensate Best Western for providing services to its members, soft brand licensees, SureStay franchisees, and WorldHotels licensees. These services include hotel support and marketing, as well as licensing the use of their brand names.
For a prospective Best Western franchisee, understanding how these dues are determined is crucial for financial planning. The Board can increase Annual Dues, Monthly Fees, and assessments no more than once per fiscal year. Any annual increase is capped at the lesser of 5% or the rate of inflation for the previous year, as measured by the United States Bureau of Labor Statistics Consumer Price Index, unless a majority of all members vote to approve a greater increase. This limitation does not apply to members paying monthly fees as a percentage of Property Room Revenue.
Annual Dues are nonrefundable and charged for each fiscal year. If a property is activated on the Best Western reservation system during the year, the Annual Dues are prorated from the activation date. As an example, the 2025 FDD states that Annual Dues are $2,279.35 for 20 rooms, with additional per-room charges: $76.63 per room for 21 to 50 rooms, $29.80 per room for 51 to 400 rooms, and $2.98 per room for rooms over 401. This tiered structure means that larger properties will pay less per room than smaller ones, but their overall dues will still be higher.
It is important for potential franchisees to note that these dues are subject to change and to carefully review the Best Western Bylaws and Rules and Regulations, as these documents govern the rights and obligations of membership. Additionally, understanding the conditions under which membership services may be restricted, such as failure to pay fees or poor quality assurance scores, is essential for maintaining good standing within the Best Western system.