For a Best Western franchise, what is the minimum and maximum amount for the Affiliation Fee, and how is it calculated?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
000 plus | Lump Sum, if applicable | Evaluation Fee portion upon Application of | Us |
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 |
|---|---|---|---|---|
| Type of Expenditure | Amount Affiliation Fee of $45,000 (50 rooms or less) plus $200 for each additional room up to 1,000 rooms) | Method of Payment | When Due Membership and Affiliation Fee portion before Board's consideration of Application of Membership | To Whom Payment is to be made |
| Proposed Construction Extension Fee (3) | $0 - $35,000 | Lump Sum | When Requested | Us |
| Opening Date Extension | $0 - | Lump Sum | When Requested | Us |
| Fee (4) | $14,750 | |||
| Distribution System Photographs Fee (5) | $1,150 - $8,000 | Lump Sum | As Required | Us |
| Construction Work (6) | $7,077,000 - $14,595,000 | As Agreed | As Agreed | Contractors |
| Furniture, Fixtures and Equipment (7) | $1,837,500 - $3,412,500 | As Agreed | As A |
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 Affiliation Fee is a crucial part of the initial investment for prospective members. The minimum Affiliation Fee is $45,000, which applies to properties with 50 rooms or less. For hotels exceeding this room count, an additional charge of $200 is levied for each additional room. This fee structure applies up to a maximum of 1,000 rooms. Therefore, the Affiliation Fee is dependent on the size of the property, specifically the number of rooms it contains.
For a prospective Best Western franchisee, this means that the initial financial outlay for the Affiliation Fee can vary significantly based on the scale of their hotel. A smaller property with 50 rooms would only need to budget $45,000 for this fee. However, a larger hotel with, for example, 500 rooms would face a substantially higher Affiliation Fee. The calculation would be $45,000 plus ($200 multiplied by 450 rooms), totaling $135,000. This tiered structure ensures that the fees are proportional to the size and potential revenue of the franchise.
It's also important to note the timing and refundability of this fee. The Membership and Affiliation Fee portion is due before the Board's consideration of the Application for Membership. According to the FDD, the Affiliation Fee is refundable under specific conditions. If a prospective Member's Application for Membership is either (i) presented to the Board by the Application Deadline and the Application for Membership is not approved or (ii) not presented to the Board by the Application Deadline due to the actions of the prospective Member, the entire Affiliation Fee will be refunded. However, the Affiliation Fee otherwise becomes non-refundable at the time of signing the Membership Agreement. This condition highlights the importance of meeting deadlines and ensuring the application is thoroughly prepared.
In summary, the Affiliation Fee for a Best Western franchise ranges from a minimum of $45,000 for smaller properties to a variable amount calculated at $200 per additional room up to 1,000 rooms. Prospective franchisees should carefully consider the number of rooms in their planned or existing property to accurately estimate this initial fee. Additionally, understanding the conditions for refundability is crucial for managing financial risks during the application process.