How is the Entrance Fee for a Best Western franchise calculated, and what components comprise it?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Impact Study Fee (1) | $0 - $4,000 | Lump Sum | Before Commission of Impact Study | Us |
| Entrance Fee (2) | $59,000 (comprised of Evaluation Fee of $4,000 plus Affiliation Fee of $45,000 (50 rooms or less) plus $200 for each additional | Lump Sum, if applicable | Evaluation Fee portion upon Application of Membership and Affiliation Fee portion before Board’s consideration of | Us |
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Entrance Fee is $59,000. This fee is comprised of a $4,000 Evaluation Fee and a $45,000 Affiliation Fee for properties with 50 rooms or less. For properties with more than 50 rooms, an additional $200 is added for each room, up to a maximum of 1,000 rooms.
The Evaluation Fee portion of the Entrance Fee is due upon application for membership, while the Affiliation Fee portion is due before the Board's consideration of the membership application. This fee structure is typical in the franchise industry, where initial fees cover the franchisor's costs of evaluating and onboarding new franchisees.
It's important to note that if a new member is purchasing their membership from an existing member, they will be charged a transfer fee instead of an Entrance Fee. This transfer fee will equal 50% of Best Western's then-current Entrance Fee. Prospective franchisees should carefully consider the number of rooms they plan to have at their property, as this will directly impact the total Affiliation Fee and, consequently, the overall Entrance Fee.