Is Best Western obligated to make expenditures for a franchisee that are equivalent to their payments of the Advertising Assessment and Marketing and Technology Fees?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have no obligation in administering any activities paid for with the Monthly Advertising Assessment and the Monthly Sales and Marketing Fees to make expenditures for you that are equivalent or proportionate to your payments or to ensure that the Property benefits directly or proportionately from such expenditures.
We may create any programs and allocate monies derived from the Advertising Assessment and the Marketing and Technology Fees to any regions or localities, as we consider appropriate in our sole business judgment. The aggregate of the Advertising Assessment and the Marketing and Technology Fees paid to us by System Hotels does not constitute a trust and we are not a fiduciary
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 66–77)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, Best Western is not obligated to make expenditures for a franchisee that are equivalent or proportionate to their payments of the Monthly Advertising Assessment and the Marketing and Technology Fees. The document states that Best Western has no obligation to ensure that a franchisee's property benefits directly or proportionately from these expenditures. This means that while franchisees are required to contribute to these funds, there is no guarantee that the money will be spent in a way that directly benefits their specific location.
This policy gives Best Western significant discretion in how it allocates advertising and marketing funds. Best Western may create programs and allocate funds derived from the Advertising Assessment and the Marketing and Technology Fees to any regions or localities, as it considers appropriate in its sole business judgment. The document also clarifies that the aggregate of these fees paid by System Hotels does not constitute a trust, and Best Western is not a fiduciary with respect to these fees.
For a prospective franchisee, this means that the benefits from the Advertising Assessment and Marketing and Technology Fees may vary. While the franchisee is required to pay these fees, there is no guarantee of a direct return on investment for their specific property. It is important for potential franchisees to understand that these fees support the overall Best Western system and brand, and individual benefits may not be directly measurable or proportionate to their contributions. Franchisees should consider this when evaluating the potential return on investment of a Best Western franchise.