Where can I find the details of the $4,000 per room fee for Best Western applicants?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
For applications approved by the Board prior to January 1, 2018, (i) all fees, dues and charges for the remainder of the applicable term; and (ii) the cost of all goods and services provided by or ordered through Best Western for which payment has not yet been received.Additionally, an Extended-Length Member that received a De
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the $4,000 per room fee applies to contingently-approved applicants who withdraw their application or are canceled/terminated. This information is detailed within Item 23, Receipts.
Specifically, if an applicant's membership is approved with certain conditions and they later withdraw or are terminated, they are obligated to pay Best Western $4,000 per room as outlined in the applicant's Terms of Approval Letter. This fee is in addition to covering the costs of any goods and services already provided by Best Western.
This fee structure is designed to protect Best Western from losses incurred during the application and approval process, especially when resources have been allocated based on the expectation of a new member joining the franchise. Prospective franchisees should carefully review the Terms of Approval Letter to understand the specific conditions and potential financial implications of withdrawing or being terminated after conditional approval.