What interest rate will Best Western charge on past due amounts?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Member agrees to timely pay all fees, dues, charges, and assessments imposed generally on the Membership by the Best Western Board of Directors ("Board") or the Membership, and the cost of all goods or services provided by or ordered through Best Western. Member agrees to allow Best Western to automatically debit Member's bank account each month in the amount owing Best Western. Member agrees to electronic monthly statements. Past due amounts shall bear interest at the rate of one and one half percent (1.5%) per month from the due date until paid, provided that such interest charge shall in no way authorize or excuse late payments or limit Best Western's rights and remedies against Member.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, past due amounts are subject to an interest rate. Specifically, Best Western charges a rate of one and one-half percent (1.5%) per month on any amounts that are not paid by the due date. This interest accrues from the original due date until the outstanding balance is fully paid.
For a prospective Best Western franchisee, this means that failing to pay fees, dues, or other charges on time can result in significant additional costs. The 1.5% monthly interest rate translates to an annual interest rate of 18%, which is a substantial penalty for late payments. Franchisees should ensure they have systems in place to manage payments and avoid incurring these charges.
It's important to note that while Best Western charges interest on late payments, this does not excuse or authorize late payments. Best Western retains all rights and remedies against the member, meaning they can still pursue other actions to recover the debt or address the breach of contract. Therefore, franchisees should prioritize timely payments to maintain a good standing with Best Western and avoid potential legal or financial repercussions.