When is the Evaluation Fee portion of the Entrance Fee due 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 |
|---|---|---|---|---|
| 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 Evaluation Fee, which is part of the Entrance Fee, is due upon submission of the Application for Membership. The Entrance Fee for a Best Western franchise is $59,000, which includes 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.
This means that a prospective Best Western franchisee must pay the $4,000 Evaluation Fee when they submit their application to Best Western. The remaining portion of the Entrance Fee, the Affiliation Fee, is due before the Board's consideration of the Membership Application. This fee structure is fairly typical in franchising, where initial fees are often required to cover the franchisor's costs of evaluating and onboarding new franchisees.
It is important to note that these fees are generally non-refundable, so prospective franchisees should carefully consider their decision before applying. However, the FDD states that if a new prospective Member's Application for Membership is presented to the Board by the Application Deadline and the Application for Membership is not approved, the entire Affiliation Fee (including the $4,000 Impact Study Fee) will be refunded. Franchisees should confirm the current fee amounts and refund policies with Best Western before submitting their application and payment.
Prospective franchisees should also be aware of other fees that may be required, such as the Impact Study Fee, Proposed Construction Extension Fee, Opening Date Extension Fee, and Distribution System Photographs Fee. Understanding the timing and amount of all these fees is crucial for managing the initial investment required to open a Best Western franchise.