What is the range of the estimated cost for furniture, fixtures, and equipment for a Best Western franchise?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
and the Technology and Marketing | | | | Assessment of 1.00% of PRR |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made | |
|---|---|---|---|---|---|
| Impact Study Fee (1) | $0 - $4,000 | Lump Sum | Before Commission of Impact Study | Us | |
| Entrance Fee (2) | $54,000 (comprised of Evaluation Fee | Lump Sum | Evaluation Fee portion upon | Us | 31 |
CONVERSION – BEST WESTERN SYSTEM HOTEL (75-ROOM)
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made | |
|---|---|---|---|---|---|
| of $4,000 plus Affiliation Fee of $45,000 (50 rooms or less) plus $200 for each additional room up to 1,000 rooms) | Application of Membership and Affiliation Fee portion before Board’s consideration of Application of Membership | ||||
| Proposed Construction | $0 - $35,000 | Lump Sum | When Requested | Us | |
| Extension Fee (3) | |||||
| Opening Date Extension | $0 - $13,500 | Lump Sum | When Requested | Us | |
| Fee (4) | |||||
| Distribution System | $1,150 - $8,000 | Lump Sum | As Required | Us | |
| Photographs Fee (5) | |||||
| Construction Work (6) | $4,830,000 - $10,500,000 | As Agreed | As Agreed | Contractors | |
| Furniture, Fixtures and | $693,000 - | As Agreed | As Agreed | Suppliers | |
| Equipment (7) | $1,155,000 | ||||
| Inventory and Operating | $105,000 - | As Agreed | As Agreed | Suppliers | |
| Equipment (8) | $241,500 | ||||
| Signage (9) | $21,000 - $47,250 | As Agreed | As Agreed | Suppliers | |
| Computer System (10) | $116,195 - $117,595 | Cash, Check or Wire Transfer | As Required | Us and Suppliers | |
| Insurance (11) | $7,500 - $12,500 | As Required | As Required | Agent/Insurer | |
| Organizational Expense | $1,050 - $2,100 | As Required | As Agreed | Accountant/Attorney | |
| (12) | |||||
| Permits and Licenses (13) | $26,250 - $89,250 | As Required | As Required | Governmental Agency | |
| Initial Training Fees | $420 - $2,200 | As Required | As Required | Us or our affiliates | |
| Miscellaneous | $0 - $78,750 | As Incurred | As Agreed | Suppliers | |
| Preopening and Project | |||||
| Management Expenses | |||||
| (15) | |||||
| Additional Funds | $270,000 - | As Incurred | As Arranged | Suppliers | |
| (3 months) (16) | $291,900 | ||||
| TOTAL (17) | |||||
| $6,126,015 - $12,652,545 |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made | |
|---|---|---|---|---|---|
| Distribution System | $1,150 - $8,000 | Lump Sum | As Required | Us | |
| Photographs Fee (5) | |||||
| Renovation Work (6) | $0 - $800,000 | As Agreed | As Agreed | Contractors | |
| Furniture, Fixtures and | $0 - $1,365,000 | As Agreed | As Agreed | Suppliers | |
| Equipment (7) | |||||
| Inventory and Operating | $105,000 - | As Agreed | As Agreed | Suppliers | |
| Equipment (8) | $241,500 | ||||
| Signage (9) | $21,000 - $47,250 | As Agreed | As Agreed | Suppliers | |
| Computer System (10) | $116,195 - $117,595 | Cash, Check or Wire Transfer | As Required | Us and Suppliers | |
| Insurance (11) | $7,500 - $12,500 | As Required | As Required | Agent/Insurer | |
| Organizational Expense | $1,050 - $2,100 | As Required | As Agreed | Accountant/Attorney | |
| (12) | |||||
| Permits and Licenses (13) | $0 - $31,500 | As Required | As Required | Governmental Agency | |
| Initial Training Fees | $420 - $2,200 | As Required | As Required | Us or our affiliates | |
| Miscellaneous | $0 - $78,750 | As Incurred | As Agreed | Suppliers | |
| Preopening and Project | |||||
| Management Expenses | |||||
| (15) | |||||
| Additional Funds | $357,000 - | As Incurred | As Arranged | Suppliers | |
| (3 months) (16) | $387,450 | ||||
| TOTAL (17) | |||||
| $666,315 - $3,204,095 | ## NEW CONSTRUCTION – BEST WESTERN PLUS SYSTEM HOTEL (90-ROOM) |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Impact Study Fee (1) | $0 - $4,000 | Lump Sum | Before Commission of Impact Study | Us |
| Entrance Fee (2) | $63,000 (comprised of Evaluation Fee of $4,000 plus Affiliation |
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the estimated cost for furniture, fixtures, and equipment ranges from $2,415,000 to $4,725,000 for a new construction System Hotel. For the conversion of an existing hotel to a Best Western Plus System Hotel with 90 rooms, the estimated cost for furniture, fixtures, and equipment ranges from $630,000 to $1,575,000. These costs are paid to suppliers and are due as agreed upon.
These figures are estimates and can vary significantly based on factors such as the type, condition, age, physical structure, and quality of furnishings of the existing hotel, as well as building construction, material, and labor costs in the specific geographic area. Best Western notes that franchisees are encouraged to independently investigate the actual costs before executing the Membership Agreement.
For a new construction hotel, these costs are incurred to furnish and equip the property to meet Best Western's standards. For a conversion, the costs depend on the existing hotel's condition and whether upgrades are needed to comply with Best Western's requirements. Given the wide range of potential costs, prospective franchisees should conduct thorough due diligence and obtain detailed quotes to develop a realistic budget for their specific location and circumstances.