How are Best Western's Direct Connect Commissions determined?
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. |
Source: Item 6 — Other Fees (FDD pages 24–37)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, Direct Connect Commissions vary by direct connect. These commissions are due upon receipt of the statement. They are payable as a pass-through commission charge for direct connect delivered reservations through negotiated brand pricing for Expedia, Booking.com, etc.
In simpler terms, Best Western franchisees will incur a commission fee for reservations made through direct connections with online travel agencies like Expedia and Booking.com. The exact amount of this commission will depend on the specific agreement Best Western has negotiated with each of these platforms.
This means that the commission isn't a fixed percentage or amount but rather a variable cost that is influenced by the terms Best Western has secured with each direct connect partner. As a pass-through charge, Best Western is simply passing on the commission they are charged to the franchisee.
For a prospective franchisee, this highlights the importance of understanding Best Western's relationships with these online travel agencies and how those relationships impact the overall cost of customer acquisition. It would be prudent to inquire about the typical range of these direct connect commissions and how they might affect the profitability of reservations coming through those channels.