What is the Opening Date Extension Fee for Best Western, and under what conditions is it refunded?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
If you request and we approve an extension, you must pay an Opening Date Extension Fee equal to ¼ of the Entrance Fee for each 3-month increment.
If your Property opens prior to the expiration of the extension, the applicable Opening Date Extension Fee will be refunded.
The Opening Date Extension Fee is otherwise nonrefundable.
The Opening Date Extension Fee represented in each of the tables above is for an extension of 3 months.
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, if a franchisee requests and Best Western approves an extension to their opening date, they must pay an Opening Date Extension Fee. This fee is equal to ¼ of the Entrance Fee for each 3-month increment the extension covers. For example, if the entrance fee was $40,000, the extension fee would be $10,000 per 3-month extension.
The Opening Date Extension Fee is refundable under specific conditions. If the Best Western property opens prior to the expiration of the approved extension, the applicable Opening Date Extension Fee will be refunded to the franchisee. This provides an incentive for franchisees to open as soon as possible and ensures they are not penalized for early completion after requesting an extension.
However, the FDD clearly states that the Opening Date Extension Fee is otherwise nonrefundable. This means that if the Best Western property does not open before the extension period expires, the franchisee will not receive a refund of the extension fee. This policy underscores the importance of carefully planning the construction or conversion timeline and accurately assessing the need for an extension. Franchisees should be aware of this financial risk when requesting an extension to their opening date.