What is the estimated range for insurance expenses included in the initial investment for a Best Western franchise?
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 |
|---|---|---|---|---|
| Insurance (11) | $7,500 - $12,500 | As Required | As Required | Agent/Insurer |
You must maintain the minimum levels and types of insurance specified in the Regulatory Documents at your expense.
This insurance must be with insurers having minimum ratings we specify; name as additional insureds the parties we specify in the Regulatory Documents; and carry the endorsements and notice requirements we specify in the Regulatory Documents.
Insurance premiums vary widely by reason of location, size of hotel and type of coverage purchased.
The amounts disclosed in the above tables represent the cost of the annual premium for three months.
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 initial investment for insurance ranges from $7,500 to $12,500. This figure represents the cost of the annual premium for three months. The franchisee is responsible for maintaining the minimum levels and types of insurance specified in the Regulatory Documents.
The insurance must be with insurers having minimum ratings specified by Best Western, and the insurance policy must name as additional insureds the parties specified in the Regulatory Documents. Additionally, the policy must carry the endorsements and notice requirements outlined in the Regulatory Documents.
The FDD notes that insurance premiums can vary significantly based on factors such as the location of the hotel, its size, and the type of coverage purchased. As such, the provided range is an estimate, and the actual cost may differ. Prospective franchisees should factor in these variables and obtain detailed insurance quotes relevant to their specific circumstances to develop a more accurate projection of their initial investment.