What is the per-room fee that a contingently-approved Best Western applicant must pay if they withdraw their application?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
For applications approved by the Board prior to January 1, 2018, (i) all fees, dues and charges for the remainder of the applicable term; and (ii) the cost of all goods and services provided by or ordered through Best Western for which payment has not yet been received.Additionally, an Extended-Length Member that received a De
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a contingently-approved applicant who withdraws their application or is terminated must pay Best Western $4,000 per room. This fee is detailed in the applicant's Terms of Approval Letter.
In addition to the per-room fee, the applicant is also responsible for covering the costs of any goods and services that Best Western has already provided or ordered on their behalf but for which payment has not been received. This means that if Best Western has incurred expenses in anticipation of the franchise opening, the applicant will need to reimburse them.
This policy highlights the financial risks associated with seeking contingent approval from Best Western. An applicant should carefully review the Terms of Approval Letter to fully understand the conditions and potential costs before proceeding. It is important to note that this fee structure applies specifically to contingently-approved applicants who later withdraw or are terminated; it does not necessarily apply to fully approved members who resign or are cancelled/terminated.