What is the estimated range for the cost of furniture, fixtures, and equipment for a Best Western franchise?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
and the Technology and Marketing | | | | Assessment of 1.00% of PRR |
| 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) | $54,000 (comprised of Evaluation Fee | Lump Sum | Evaluation Fee portion upon | Us | 31 |
CONVERSION – BEST WESTERN SYSTEM HOTEL (75-ROOM)
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made | |
|---|---|---|---|---|---|
| of $4,000 plus Affiliation Fee of $45,000 (50 rooms or less) plus $200 for each additional room up to 1,000 rooms) | Application of Membership and Affiliation Fee portion before Board’s consideration of Application of Membership | ||||
| Proposed Construction | $0 - $35,000 | Lump Sum | When Requested | Us | |
| Extension Fee (3) | |||||
| Opening Date Extension | $0 - $13,500 | Lump Sum | When Requested | Us | |
| Fee (4) | |||||
| Distribution System | $1,150 - $8,000 | Lump Sum | As Required | Us | |
| Photographs Fee (5) | |||||
| Construction Work (6) | $4,830,000 - $10,500,000 | As Agreed | As Agreed | Contractors | |
| Furniture, Fixtures and | $693,000 - | As Agreed | As Agreed | Suppliers | |
| Equipment (7) | $1,155,000 | ||||
| Inventory and Operating | $105,000 - | As Agreed | As Agreed | Suppliers | |
| Equipment (8) | $241,500 | ||||
| Signage (9) | $21,000 - $47,250 | As Agreed | As Agreed | Suppliers | |
| Computer System (10) | $116,195 - $117,595 | Cash, Check or Wire Transfer | As Required | Us and Suppliers | |
| Insurance (11) | $7,500 - $12,500 | As Required | As Required | Agent/Insurer | |
| Organizational Expense | $1,050 - $2,100 | As Required | As Agreed | Accountant/Attorney | |
| (12) | |||||
| Permits and Licenses (13) | $26,250 - $89,250 | As Required | As Required | Governmental Agency | |
| Initial Training Fees | $420 - $2,200 | As Required | As Required | Us or our affiliates | |
| Miscellaneous | $0 - $78,750 | As Incurred | As Agreed | Suppliers | |
| Preopening and Project | |||||
| Management Expenses | |||||
| (15) | |||||
| Additional Funds | $270,000 - | As Incurred | As Arranged | Suppliers | |
| (3 months) (16) | $291,900 | ||||
| TOTAL (17) | |||||
| $6,126,015 - $12,652,545 |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made | |
|---|---|---|---|---|---|
| Distribution System | $1,150 - $8,000 | Lump Sum | As Required | Us | |
| Photographs Fee (5) | |||||
| Renovation Work (6) | $0 - $800,000 | As Agreed | As Agreed | Contractors | |
| Furniture, Fixtures and | $0 - $1,365,000 | As Agreed | As Agreed | Suppliers | |
| Equipment (7) | |||||
| Inventory and Operating | $105,000 - | As Agreed | As Agreed | Suppliers | |
| Equipment (8) | $241,500 | ||||
| Signage (9) | $21,000 - $47,250 | As Agreed | As Agreed | Suppliers | |
| Computer System (10) | $116,195 - $117,595 | Cash, Check or Wire Transfer | As Required | Us and Suppliers | |
| Insurance (11) | $7,500 - $12,500 | As Required | As Required | Agent/Insurer | |
| Organizational Expense | $1,050 - $2,100 | As Required | As Agreed | Accountant/Attorney | |
| (12) | |||||
| Permits and Licenses (13) | $0 - $31,500 | As Required | As Required | Governmental Agency | |
| Initial Training Fees | $420 - $2,200 | As Required | As Required | Us or our affiliates | |
| Miscellaneous | $0 - $78,750 | As Incurred | As Agreed | Suppliers | |
| Preopening and Project | |||||
| Management Expenses | |||||
| (15) | |||||
| Additional Funds | $357,000 - | As Incurred | As Arranged | Suppliers | |
| (3 months) (16) | $387,450 | ||||
| TOTAL (17) | |||||
| $666,315 - $3,204,095 | ## NEW CONSTRUCTION – BEST WESTERN PLUS SYSTEM HOTEL (90-ROOM) |
| 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 Commissi |
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 estimated cost for furniture, fixtures, and equipment for a new construction Best Western System Hotel ranges from $2,415,000 to $4,725,000. For the conversion of an existing hotel to a Best Western System Hotel, the estimated cost ranges from $630,000 to $1,575,000. These costs are to be paid to suppliers as agreed upon.
These figures are estimates and can vary significantly based on factors such as the hotel's type, condition, age, physical structure, and the quality of furnishings. The location of the hotel also plays a role, as building construction, material, and labor costs differ by geographic area. Best Western recommends that prospective franchisees independently investigate these costs before signing a Membership Agreement.
It is important to note that these costs are associated with ensuring the property meets the standards outlined in Best Western's Regulatory Documents. For conversions, the lower end of the estimated range assumes the hotel was already operational as a hotel immediately before converting to the Best Western brand. Franchisees should carefully consider the potential for higher costs if significant renovations or upgrades are needed to meet Best Western's requirements.