What is the maximum Entrance Fee a Best Western franchisee with 1,000 rooms might pay, and how is it comprised?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
the Board but the prospective Member does not accept the conditions of approval, the $4,000 Impact Study Fee will not be refunded.
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- All prospective Members must complete an Application for Membership for a hotel and pay a $4,000 Evaluation Fee and an Affiliation Fee, the amount of which will depend on the number of rooms at the Property.
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 structured with a base of $45,000 for properties with 50 rooms or less, with an additional charge of $200 for each room exceeding that threshold, up to a maximum of 1,000 rooms. For a prospective Best Western franchisee looking to establish a property with the maximum room count, the calculation would be $45,000 plus $200 for each of the additional 950 rooms (1,000 total rooms - 50 base rooms).
Therefore, the maximum Affiliation Fee for a 1,000-room Best Western property would be $45,000 + (950 rooms * $200/room) = $45,000 + $190,000 = $235,000. This fee is a significant initial investment component that prospective franchisees need to consider when evaluating the financial feasibility of a Best Western franchise.
It is important to note that this Affiliation Fee is generally non-refundable once the Membership Agreement is signed, highlighting the need for careful due diligence before committing to the franchise. Additionally, the FDD mentions an Impact Study Fee of $4,000, which may be credited towards the Affiliation Fee under certain conditions, offering a slight reduction in the initial financial burden if applicable.