For a Best Western franchise, what is the minimum and maximum amount for the Entrance Fee, and what does this fee comprise of?
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 Entrance Fee is $59,000. This fee is comprised of 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 Entrance Fee is a one-time payment required to join the Best Western franchise system. The Evaluation Fee is paid upon application for membership, while the Affiliation Fee is due before the Board's consideration of the membership application. It's important to note that the Affiliation Fee becomes non-refundable once the Membership Agreement is signed.
For prospective members purchasing their membership from an existing member, a transfer fee is charged instead of the Entrance Fee. This transfer fee is equal to 50% of the then-current Entrance Fee. Understanding the structure and potential non-refundability of these fees is crucial for anyone considering a Best Western franchise.