To whom are the payments made for the Computer System components for a Best Western franchise, and what are the exceptions?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
The hardware, software, cabling and related equipment comprising the computer system (the "Computer System") you are required to obtain and maintain throughout the term of the Membership Agreement varies depending on the type of Property you develop. The tables below detail the components of the Computer System by Property-type, including the estimated initial purchase price of the Computer System and certain related ongoing fees. All payments are made to third-parties except for the HMSS One-Time Installation Fee, HMSS Monthly Maintenance Fee, the BWI Two-Way System Installation Fee, the AutoClerk PMS Software Fee, and the BWI Two-Way Interface Maintenance Fee, which are payable to us or our affiliate, AutoClerk.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 66–77)
What This Means (2025 FDD)
According to the 2025 Best Western Franchise Disclosure Document, payments for the computer system components are generally made to third parties. However, there are specific exceptions where payments are directed to Best Western or its affiliate, AutoClerk. These exceptions include the HMSS One-Time Installation Fee, HMSS Monthly Maintenance Fee, the BWI Two-Way System Installation Fee, the AutoClerk PMS Software Fee, and the BWI Two-Way Interface Maintenance Fee.
For a prospective Best Western franchisee, this means that the initial investment in the computer system will involve dealing with various vendors. It is important to note which fees are paid to Best Western directly versus those paid to outside parties. This distinction is crucial for budgeting and accounting purposes. The initial purchase price for PMS Hardware (2 Workstations) is estimated at $6,600, Point of Sale Hardware (2 EMV Devices, Installation, PMS Interface) at $4,000, Telephone System at $35,000 and Secure Printing (Public Space) at $6,000 for Best Western, Best Western Plus, @Home by Best Western and Executive Residency by Best Western.
For Best Western Premier properties, the initial purchase price for PMS Hardware (4 Workstations) is estimated at $20,000, Point of Sale Hardware (4 EMV Devices, Installation, PMS Interface) at $10,000, Telephone System at $35,000, Secure Printing (Public Space) at $6,000, Guest Wireless Solution (WIFI) (Gateway, Switches, UPS, Cabling, etc.) at $40,000, Electronic Door Locking System (Onity preferred) at $30,000 and Televisions (Public Space) at $7,000. Additionally, there are ongoing fees such as the PMS Support Fee and GMS Support Fee at $3.97 per room per month for the AutoClerk Cloud PMS (includes $1.45 per room for the GMS), BWI Two-Way Interface Maintenance Fee at $0 to $669 per month, and HMSS Monthly Maintenance Fee at $130 per month, per Property.
Understanding these payment structures and amounts is essential for managing the financial aspects of the franchise. Franchisees should clarify with Best Western and AutoClerk the exact payment schedules, accepted payment methods, and any potential changes to these fees over the term of the agreement. This transparency will help in accurately forecasting expenses and ensuring smooth operations.