When is the Best Western Global Distribution Systems (“GDS”) Fee due?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| Marketing and Technology Fees | 2.10% of PRR. See Note 1. | Billed one month in arrears, due and payable upon statement receipt. | See Note 1 for details on what components comprise the Marketing and Technology Fees. |
|---|---|---|---|
| Direct Connect Commissions | Varies by direct connect. | Due and payable upon statement receipt. | Payable as a pass-through commission charge for direct connect delivered reservations through negotiated brand pricing for Expedia, Booking.com, etc. |
| Global Distribution | $7.90 per booking. | Due and payable | Payable for reservations booked |
| Systems (“GDS”) | monthly upon | through GDS and GDS internet | |
| Fee | statement receipt. | travel sites. |
Source: Item 6 — Other Fees (FDD pages 24–37)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Global Distribution Systems (GDS) Fee is due and payable monthly upon statement receipt. This fee, which amounts to $7.90 per booking, applies to reservations made through GDS and GDS internet travel sites.
For a prospective Best Western franchisee, this means that each month, they will receive a statement that includes charges for reservations made through these systems. They are then obligated to pay the GDS fee promptly upon receiving this statement. This is a standard practice in the hotel franchising industry, as GDS systems are a common channel for bookings, and the fees cover the costs associated with maintaining and operating these systems.
It's important for franchisees to factor this ongoing fee into their operating budget and to ensure they have a system in place to track and reconcile these charges each month. Understanding the volume of bookings typically generated through GDS can help in forecasting these expenses accurately. Franchisees should also clarify with Best Western the specific GDS channels included under this fee to avoid any surprises.