What is the fixed annual interest rate on the Tempe Loan for Best Western?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
The interest rate on the Tempe Loan is a fixed annual rate of 3.50% and is computed and accrued on an ACT/360 basis. The Tempe Loan is secured by, among other things, the Deed of Trust and is guaranteed by the Company.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the interest rate on the Tempe Loan is a fixed annual rate of 3.50%. This rate is computed and accrued on an ACT/360 basis. This means that for every loan under the Tempe Loan, the interest rate will not fluctuate and will remain constant at 3.50% per year.
The FDD also states that the Tempe Loan is secured by a Deed of Trust and guaranteed by the Company. This indicates that Best Western is providing assurance for the loan, which could be a factor for prospective franchisees to consider when evaluating the financial stability and support offered by the franchisor.
Prospective franchisees should note that this information pertains specifically to the Tempe Loan and may not reflect the terms of other financing options available through Best Western or other lenders. It is important to consult with financial advisors and carefully review all loan documents to understand the specific terms and conditions applicable to their individual circumstances.