What is the range for the estimated initial investment for Construction Work for a Best Western franchise?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| $45,000 (50 rooms or less) plus $200 for each additional room up to 1,000 rooms) | portion before Board’s consideration of Application of Membership | |||
| Proposed Construction | $0 - $35,000 | Lump Sum | When | Us |
| Extension Fee (3) | Requested | |||
| Opening Date Extension | $0 - $15,750 | Lump Sum | When | Us |
| Fee (4) | Requested | |||
| Distribution System | $1,150 - $8,000 | Lump Sum | As Required | Us |
| Photographs Fee (5) | ||||
| Construction Work (6) | $13,545,000 - $26,250,000 | As Agreed | As Agreed | Contractors |
| Furniture, Fixtures and | $2,415,000 - | As Agreed | As Agreed | Suppliers |
| Equipment (7) | $4,725,000 | |||
| Inventory and Operating | $210,000 - | As Agreed | As Agreed | Suppliers |
| Equipment (8) | $367,500 | |||
| Signage (9) | $21,000 - $47,250 | As Agreed | As Agreed | Suppliers |
| Computer System (10) | $152,595 - $153,995 | 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) | $52,500 - $183,750 | As Required | As Required | Governmental Agency |
| Initial Training Fees | $420 - $2,200 | As Required | As Required | Us or our affiliates |
| Miscellaneous | $26,250 - $78,750 | As Incurred | As Agreed | Suppliers |
| Preopening and Project | ||||
| Management Expenses | ||||
| (15) | ||||
| Additional Funds | $499,800 - | As Incurred | As Arranged | Suppliers |
| (3 months) (16) | $544,950 | |||
| TOTAL (17) | ||||
| $16,995,265 - $32,493,745 |
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 initial investment for construction work varies depending on the specific Best Western brand. For a new construction Best Western System Hotel (75-room), the construction work is estimated to range from $13,545,000 to $26,250,000. For a new construction Best Western Plus System Hotel (90-room), the construction work is estimated to range from $7,077,000 to $14,595,000. For a new construction @Home by Best Western System Hotel (100-room), the construction work is estimated to range from $4,830,000 to $10,500,000.
The cost of construction work for a Best Western Premier System Hotel (120-room) is estimated to range from $16,995,000 to $32,493,000. These costs are paid, as agreed, to contractors.
These figures represent a significant investment and highlight the importance of careful planning and due diligence before committing to a Best Western franchise, especially when considering new construction. The actual costs may vary substantially depending on factors such as the geographic location, the specific design, and any local regulations or requirements.
Prospective franchisees should carefully review these estimates with their own financial advisors and contractors to develop a realistic budget for their project. It is also important to understand what is included in these estimates and what additional costs may be incurred during the construction process.