How are the monthly fees calculated for Best Western members, as opposed to other fees and dues?
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 in arrears, payable by the 15th of each month.
Advertising Assessment
Effective December 1, 2024, the advertising assessment is $16.39 per room per month.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, monthly fees are calculated differently than other fees and dues. The monthly fee is a percentage of Property Room Revenue (PRR), as defined in the Best Western Property owner's Membership Agreement. These fees are billed one month in arrears and are payable by the 15th of each month. This contrasts with other fees like the Affiliation Fee, which has a minimum of $45,000 for properties with 50 rooms or less, plus $200 for each additional room up to 1,000 rooms, and the Evaluation Fee of $4,000.
Annual Dues are also calculated differently, with a rate of $2,279.35 for 20 rooms, plus additional charges per room based on the total number of rooms. Specifically, it's $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. Unlike monthly fees, Annual Dues are nonrefundable and are charged for each fiscal year, prorated from the date the property is activated on the Best Western reservation system if the application is accepted during the year.
In addition to monthly fees and annual dues, Best Western members also pay an advertising assessment, which, as of December 1, 2024, is $16.39 per room per month. The Board of Directors can increase this assessment once each 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. There are also sales and marketing and technology assessments, calculated as percentages of PRR. The sales and marketing assessment is 0.6% of PRR, the technology assessment is 0.5% of PRR, and a combined technology and marketing assessment is 1.0% of PRR, all billed one month in arrears.
For a prospective franchisee, understanding these different fee structures is crucial for financial planning. Monthly fees, being a percentage of revenue, will fluctuate with business performance, while annual dues and advertising assessments provide more predictable fixed costs. The potential for the Board of Directors to increase certain fees annually, subject to specific limitations, should also be considered. It is important to review the Best Western Property owner's Membership Agreement for the precise definition of Property Room Revenue (PRR) to accurately forecast monthly fee obligations.