For a Best Western System Hotel proposed for construction, how far in advance of the expiring construction commencement period must an extension request be submitted?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
reement.
Proposed Construction Extension Fee to Begin Construction
An applicant granted approval for a System Hotel proposed for construction must commence construction within 12 months from the date of approval, or otherwise may apply for extensions of time to begin construction. Extensions may be granted in 6-month increments. The total amount of time that may be allowed to begin construction is 3 years from the date of approval. Requests for extensions: must be submitted at least 30 days prior to the then expiring period allowed for commencement of construction; include a progress report describing, at a minimum, the current status of financing, architectural plans, specifications, satisfaction of zoning requirements, and plans for commencement of construction; and payment of a non-waivable proposed construction extension fee ("Proposed Construction Extension Fee"). In the event a request for extension is not timely submitted, an extension shall not be granted and the applicant may not re-apply for membership at the same location for 90 days following the end of the extension period. The Proposed Construction Extension Fee is currently $5,000 for the first 6-month increment and $10,000 for each subsequent 6-month increment. The Proposed Construction Extension Fee for the total amount of time that may be allowed to begin cons
Source: Item 5 — Initial Fees (FDD pages 21–24)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, if you are granted approval for a Best Western System Hotel proposed for construction, you must commence construction within 12 months from the date of approval. If you cannot begin construction within this timeframe, you may apply for extensions, which can be granted in 6-month increments. The maximum extension period allowed is 3 years from the initial approval date.
To request an extension for commencing construction, you must submit your request at least 30 days before the end of the current construction commencement period. This request must include a progress report detailing the status of financing, architectural plans, specifications, zoning requirements, and your plans for starting construction. Additionally, you must pay a non-waivable proposed construction extension fee.
Failing to submit an extension request on time will result in the denial of the extension. In this case, you will not be allowed to re-apply for membership at the same location for 90 days following the end of the extension period. The Proposed Construction Extension Fee is currently $5,000 for the first 6-month increment and $10,000 for each subsequent 6-month increment. The total Proposed Construction Extension Fee for the maximum 3-year extension period is $35,000.