Is the Best Western extension fee refundable, and if not, when does it become nonrefundable?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- 500.8 A. An Applicant granted conditional approval for a Property proposed for construction may apply for extensions of time related to the conditional approval so long as construction has not yet commenced. Extensions may be granted by Best Western in six (6) month increments. The total amount of time that may be allowed to begin construction shall be three (3) years from the date of conditional approval. Each such Applicant seeking an extension shall submit:
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- Any such request at least thirty (30) days prior to the then-expiring period allowed for commencement of construction;
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- A progress report describing, at a minimum, the current status of financing, architectural plans, specifications, satisfaction of zoning requirements, and plans for commencement of construction; and
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- Payment of a non-waivable extension fee, with the extension fee determined by the Board from time to time. The extension fee shall be nonrefundable as of the date that the extension period begins.
- B. In the event that a request for extension is not timely submitted, an extension shall not be granted and the applicant may not re-apply for Membership at the same location for ninety (90) days following the end of the extension period. Any such re-application following the expiration of an extension shall be accompanied by all fees required under Rule 500.6.
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Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to the 2025 Best Western Franchise Disclosure Document, an applicant who has been granted conditional approval for a property proposed for construction may apply for extensions of time if construction has not yet started. These extensions can be granted by Best Western in six-month increments, with a total allowance of three years from the date of conditional approval to begin construction.
To request an extension, the applicant must submit the request at least 30 days before the current period expires, provide a progress report detailing the status of financing, architectural plans, zoning requirements, and construction plans, and pay a non-waivable extension fee. This extension fee is determined by Best Western's Board and is nonrefundable once the extension period begins.
In practical terms, this means that a Best Western franchisee needs to carefully plan their construction timeline. If delays occur, they can apply for an extension, but they must pay the extension fee. The fee is nonrefundable once the extension period starts, so franchisees should be certain they need the extension before that date. Failure to submit a timely request for an extension will result in the denial of the extension, and the applicant will not be able to re-apply for membership at the same location for 90 days following the end of the extension period.