What is the BWR cost per point issued for Best Western?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| Marketing and Technology Fees | 2.10% of PRR. See Note 1. | Billed one month in arrears, due and payable upon statement receipt. | See Note 1 for details on what components comprise the Marketing and Technology Fees. |
|---|---|---|---|
| Direct Connect Commissions | Varies by direct connect. | Due and payable upon statement receipt. | Payable as a pass-through commission charge for direct connect delivered reservations through negotiated brand pricing for Expedia, Booking.com, etc. |
| Global Distribution | $7.90 per booking. | Due and payable | Payable for reservations booked |
| Systems (“GDS”) | monthly upon | through GDS and GDS internet | |
| Fee | statement receipt. | travel sites. | |
| Third-Party Internet Booking Fee | $4.60 per booking. | Due and payable monthly upon statement receipt. | Payable for reservations booked through third-party internet booking sites. |
| Third-Party Partner Booking Fee | $2.00 per booking. | Due and payable monthly upon statement receipt. | Payable for reservations booked through our third-party partner. |
| Performance Based Marketing (“PBM”) | 10% of PRR for each reservation received from a digital opportunity. See Note 1. | Due and payable monthly upon statement receipt. | Commission charge for reservations which result from digital opportunity. Subject to amendment by majority vote of System Hotels. |
| Member Web Booking Commissions | 10% of PRR for reservations from North American (N.A.) hotels. 5% of PRR for reservations from international hotels. | Billed one month in arrears. Due and payable monthly upon statement receipt. | Commission charge for reservations the Property receives from N.A. Best Western hotels and/or international hotels. |
| 10% of PRR for reservations to N.A. hotels. 5% of PRR for reservations to international hotels. | Credited one month in arrears. | Commission credit for reservations the Property sends to N.A. Best Western hotels and/or international hotels. | |
| Travel Agent Commissions | Varies by travel agent and agreement. | Case by case basis. Due and payable monthly upon statement receipt. | Payable as a pass-through commission charge for travel agents that are passed on to System Hotels without mark-up. |
| Best Western Rewards® (“BWR®”) Fee | 5.5% of PRR (2.75% of PRR for Executive Residency by Best Western and @Home by Best Western), with a BWR cost per point issued of $0.0055. | Billed one month in arrears. Due and payable monthly upon statement receipt. | Fee for BWR points or airline program miles issued by the Property to BWR members based on 10 points issued for each revenue dollar (5 points issued for each revenue dollar for Executive |
Source: Item 6 — Other Fees (FDD pages 24–37)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the BWR (Best Western Rewards) cost per point issued is $0.0055. This fee is part of the overall Best Western Rewards fee, which is 5.5% of Property Room Revenue (PRR), but is reduced to 2.75% of PRR for Executive Residency by Best Western and @Home by Best Western properties.
This means that for every rewards point Best Western issues to its loyalty program members, each franchisee incurs a cost of approximately half a cent. This cost is factored into the monthly Best Western Rewards fee, which is calculated based on a percentage of the revenue generated from guest rooms. The BWR fee is billed one month in arrears and is due upon receipt of the statement.
For a prospective franchisee, this indicates that participation in the Best Western Rewards program comes with a direct cost per point issued, impacting the overall expenses associated with the loyalty program. Franchisees of Executive Residency by Best Western and @Home by Best Western will benefit from a lower BWR fee percentage, reflecting a potentially different rewards structure or participation level. Understanding this cost is crucial for budgeting and assessing the financial implications of offering rewards to guests.