factual

Who determines the appropriate fee for a Best Western membership application?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

500.7 A. All Applicants for new Membership, including those made by or on behalf of prospective purchasers or transferees of lodging facilities for which current Memberships are held, shall remit a non-refundable evaluation fee with their applications. The amount of the evaluation fee shall be established by the Board from time to time to defray, in whole or in part, the administrative costs, including assessment costs, of evaluating such new Membership Applications.

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

500.59 Effective June 26, 2024, or as soon afterward as is practicable, Members shall purchase specific brands of the following operational supply and equipment (OSE) products from one of two distributors selected by Best Western: toilet paper, facial tissue, and disposable products, such as paper plates, paper bowls, cutlery, and similar disposable items. Best Western shall designate the specific brands and distributors, noting Best Western's Board of Directors shall have the authority to approve and to amend brands or distributors if it is in the best interests of the membership to do so (e.g., pricing and performance) and upon appropriate notice to the membership.

  • 500.8 A. An Applicant granted conditional approval for a Property proposed for construction may apply for extensions of time related to the conditional approval so long as construction has not yet commenced. Extensions may be granted by Best Western in six (6) month increments. The total amount of time that may be allowed to begin construction shall be three (3) years from the date of conditional approval. Each such Applicant seeking an extension shall submit:
      1. Payment of a non-waivable extension fee, with the extension fee determined by the Board from time to time. The extension fee shall be nonrefundable as of the date that the extension period begins.

Source: Item 23 — Receipts (FDD pages 108–413)

What This Means (2025 FDD)

According to the 2025 Best Western FDD, the Best Western Board of Directors is responsible for establishing various fees related to membership. Specifically, the Board sets the amount of the non-refundable evaluation fee that all new membership applicants must remit with their applications. This fee is intended to cover the administrative costs associated with evaluating these applications.

In addition to the evaluation fee, the Board also determines the entrance fees to be paid by applicants, which cannot be waived, although there is an exception for Development Incentives. The Board also establishes annual dues for continuing memberships and monthly fees designed to cover the cost of providing services to members. These monthly fees, for members approved on or after January 1, 2018, are determined annually by the Board before the following fiscal year.

Furthermore, the Board has the authority to approve and amend brands or distributors for specific operational supply and equipment (OSE) products if it is in the best interests of the membership. The Board also determines the extension fee for applicants seeking extensions of time related to conditional approval for properties proposed for construction. These fees can be changed by the Board from time to time. Understanding the Board's role in setting these fees is crucial for prospective franchisees as it directly impacts their initial and ongoing financial obligations to Best Western.

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.