How is the Monthly Fee for a Best Western franchise calculated?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
New Membership Fees Effective December 1, 2024 (in U.S. Dollars)
All Fees, Dues, Charges and Assessments
- A. U.S. Membership: Billed and paid in U.S. dollars.
- B. Canadian Membership: Billed in Canadian dollars based on the monthly exchange rate and paid in Canadian or U.S. dollars.
Entrance Fee (One-time fee to accompany application) Single brand:
- A. Affiliation Fee: Minimum $45,000 (50 rooms or less), plus $200 for each additional room up to a maximum of 1,000 rooms, plus
- B. Evaluation Fee: $4,000.
Annual Dues
Annual Dues are nonrefundable and are charged for each fiscal year. For applications accepted during the year, Annual Dues are prorated from the date the property is activated on the Best Western reservation system.
Annual Dues are $2,279.35 for 20 rooms plus: $76.63 per room for 21 to 50 rooms; $29.80 per room for 51 to 400 rooms; and $2.98 per room for rooms over 401.
Monthly Fees
The Monthly Fee is a percentage of Property Room Revenue (PRR), as set forth in the Best Western Property owner's Membership Agreement. Monthly Fees based are billed one (1) month i
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Monthly Fee is a percentage of Property Room Revenue (PRR), as defined in the Best Western Property owner's Membership Agreement. The monthly fees are billed one month in arrears and are due by the 15th of each month. In addition to the monthly fee, Best Western franchisees also pay other assessments.
These assessments include an advertising assessment, which, as of December 1, 2024, is $16.39 per room per month. The Best Western Board of Directors can increase this assessment once per fiscal year, but the increase cannot exceed the greater of 2% of the prior year's assessment or the rate of inflation for the previous year as measured by the United States Bureau of Labor Statistics Consumer Price Index. There is also a sales and marketing assessment of 0.6% of PRR and a technology assessment of 0.5% of PRR, both billed one month in arrears. Alternatively, there may be a technology and marketing assessment of 1.0% of PRR, also billed one month in arrears.
It is important for prospective franchisees to carefully review the Best Western Property owner's Membership Agreement to fully understand how Property Room Revenue is defined and how the monthly fee percentage is determined. Understanding these calculations is crucial for accurately forecasting expenses and profitability. Additionally, franchisees should be aware of the potential for annual increases in the advertising assessment, which could impact their overall costs.