factual

When are the annual dues for Best Western memberships considered non-refundable?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

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Fn 2 The requirement regarding the "Peloton" brand may be modified by the Board of Directors to a like product based on relevant factors (e.g., pricing, availability, technology, and adoption).

EXHIBIT J-3 TO FDD

2025 MEMBERSHIP FEES

2025 Ne

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 nonrefundable and are charged for each fiscal year. For new Best Western applications accepted during the year, the annual dues are prorated from the date the property is activated on the Best Western reservation system.

This means that once a Best Western property is active on the reservation system, the franchisee is responsible for the annual dues, and these dues will not be refunded. The amount of the annual dues depends on the number of rooms at the property. For example, the annual dues are $2,279.35 for 20 rooms, with additional charges per room for properties with more than 20 rooms. Specifically, there is a charge of $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.

Prospective franchisees should be aware that these dues are an ongoing cost of being a Best Western member and should factor this into their financial planning. Since the dues are prorated for new applications accepted during the year, it is important to understand exactly when the property will be activated on the reservation system to accurately calculate the initial annual dues payment. Franchisees should also be aware of other fees, such as monthly fees, advertising assessments, and technology assessments, which are calculated differently and also contribute to the overall cost of operating a Best Western franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.