What is the maximum amount for the Best Western Proposed Construction Extension Fee, and when is it due?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
and the Technology and Marketing | | | | Assessment of 1.00% of PRR |
| 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) | $54,000 (comprised of Evaluation Fee | Lump Sum | Evaluation Fee portion upon | Us | 31 |
CONVERSION – BEST WESTERN SYSTEM HOTEL (75-ROOM)
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| of $4,000 plus Affiliation Fee of $45,000 (50 rooms or less) plus $200 for each additional room up to 1,000 rooms) | Application of Membership and Affiliation Fee portion before Board’s consideration of Application of Membership | |||
| Proposed Construction | $0 - $35,000 | Lump Sum | When Requested | Us |
| Extension Fee (3) | ||||
| Opening Date Extension | $0 - $13,500 | Lump Sum | When Requested | Us |
| Fee (4) | ||||
| Distribution System | $1,150 - $8,000 | Lump Sum | As Required | Us |
| Photographs Fee (5) | ||||
| Construction Work (6) | $4,830,000 - $10,500,000 | As Agreed | As Agreed | Contractors |
| Furniture, Fixtures and | $693,000 - | As Agreed | As Agreed | Suppliers |
| Equipment (7) | $1,155,000 |
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, an applicant granted approval for a System Hotel proposed for construction must begin construction within 12 months from the date of approval. However, Best Western may grant extensions of time to begin construction if the applicant makes a request for extension that satisfies certain requirements and pays a Proposed Construction Extension Fee. Extensions may be granted in 6-month increments, and the total amount of time that may be allowed to begin construction is 3 years from the date of approval.
The Proposed Construction Extension Fee is $5,000 for the first 6-month increment and $10,000 for each subsequent 6-month increment. The Proposed Construction Extension Fee represented in the table is for an extension of 2 years beyond the initial 12 months you have to begin construction (i.e., $35,000). Therefore, the maximum Proposed Construction Extension Fee is $35,000.
According to the table provided in Item 7, the Proposed Construction Extension Fee ranges from $0 to $35,000, payable in a lump sum. This fee is due when requested by Best Western. This fee is paid to Best Western.