What is the Proposed Construction Extension Fee for the first 6-month increment for a Best Western franchise?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
reement. The Affiliation Fee is $45,000 (50 rooms or less), plus $200 for each additional room up to a maximum of 1,000 rooms.
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- An applicant granted approval for a System Hotel proposed for construction must begin construction within 12 months from the date of approval, or may apply for extensions of time to begin construction if the applicant makes a request for extension that satisfies certain requirements and pays a Proposed Construction Extension Fee. Extensions may be granted in 6-month increments and the total amount of time that may be allowed to begin construction is 3 years form the date of approval. The Proposed Construction Extension Fee is $5,000 for the first 6-month increment and $10,000 for each subsequent 6-month increment. The Proposed Construction Extension Fee represented in
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 an applicant is granted approval for a new System Hotel construction, they must begin construction within 12 months from the approval date. However, Best Western allows applicants to apply for extensions to this timeline under certain conditions.
Specifically, a Best Western franchisee can request an extension in 6-month increments, with a Proposed Construction Extension Fee of $5,000 for the initial 6-month extension. For each subsequent 6-month extension, the fee increases to $10,000. The maximum extension period allowed is 3 years from the initial approval date.
This fee structure encourages franchisees to adhere to the original construction timeline while providing flexibility if unforeseen delays occur. The escalating fees for subsequent extensions serve as an incentive to minimize delays and complete construction as quickly as possible. The FDD also states that the Proposed Construction Extension Fee represented in the table is for an extension of 2 years beyond the initial 12 months, totaling $35,000.