What is the cost of the Proposed Construction Extension Fee for Best Western for the first 6-month increment?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
reement. The Affiliation Fee is $45,000 (50 rooms or less), plus $200 for each additional room up to a maximum of 1,000 rooms.
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- An applicant granted approval for a System Hotel proposed for construction must begin construction within 12 months from the date of approval, or may apply for extensions of time to begin construction if the applicant makes a request for extension that satisfies certain requirements and pays a Proposed Construction Extension Fee. Extensions may be granted in 6-month increments and the total amount of time that may be allowed to begin construction is 3 years form the date of approval.
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, an applicant granted approval for a new construction System Hotel must begin construction within 12 months of the approval date. If the applicant needs more time, they can apply for extensions in 6-month increments by paying a Proposed Construction Extension Fee.
The Proposed Construction Extension Fee for Best Western is $5,000 for the first 6-month increment. For each subsequent 6-month increment, the fee increases to $10,000. The maximum extension time allowed is 3 years from the initial approval date.
This fee is important for prospective Best Western franchisees to consider, as delays in construction can occur for various reasons. Franchisees should factor this potential cost into their initial budget and project timeline. Understanding the extension fee structure allows franchisees to plan for contingencies and manage their project effectively, ensuring they can meet Best Western's requirements for opening a new System Hotel.