For a Best Western Conversion System Hotel (75-room), what is the estimated range for permits and licenses?

According to Best Western's 2025 Franchise Disclosure Document, the cost for licenses and permits to operate a Best Western property varies significantly. The FDD indicates that these costs are dependent on the specific location of the property, including the state, county, and other political subdivisions, as well as the size of the property. For a conversion of an existing hotel to a Best Western System Hotel, the low end of the estimated range assumes that the hotel was already open and operating as a hotel immediately before the conversion. In this case, it is presumed that there will be minimal permit and license fees. The estimate includes licensing or permits necessary for the property to offer food and alcoholic beverages. The cost of obtaining an alcohol permit can vary substantially by jurisdiction, especially in areas where a liquor license is considered a valuable asset.

For prospective Best Western franchisees, this means that the initial investment for licenses and permits can range from minimal to substantial, depending on whether the hotel is a new construction or a conversion, and the specific requirements of the local jurisdiction. Franchisees should be prepared to budget accordingly and conduct thorough research into the specific licensing and permit requirements in their area. It is also important to consider whether the property will offer food and alcoholic beverages, as this will likely increase the cost of licenses and permits.

Given the variability in costs, Best Western advises potential franchisees to independently investigate the actual costs before signing the Membership Agreement. This due diligence is crucial to accurately assess the financial feasibility of the franchise and avoid unexpected expenses. Consulting with local authorities and experienced hospitality professionals can provide valuable insights into the specific licensing and permit requirements in the area.