Is there an additional charge for late payment of monthly fees for a Best Western membership?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Member agrees to timely pay all fees, dues, charges, and assessments imposed generally on the Membership by the Best Western Board of Directors ("Board") or the Membership, and the cost of all goods or services provided by or ordered through Best Western. Member agrees to allow Best Western to automatically debit Member's bank account each month in the amount owing Best Western. Member agrees to electronic monthly statements. Past due amounts shall bear interest at the rate of one and one half percent (1.5%) per month from the due date until paid, provided that such interest charge shall in no way authorize or excuse late payments or limit Best Western's rights and remedies against Member.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, members who do not pay fees on time will incur a late fee. Specifically, past due amounts will accrue interest at a rate of 1.5% per month from the original due date until the payment is made. This interest charge applies to any outstanding balance a Best Western member may have.
This late fee policy serves as an incentive for franchisees to ensure timely payments. While the 1.5% monthly interest rate might seem small, it can accumulate over time if balances remain unpaid, potentially impacting a franchisee's profitability. Additionally, the FDD clarifies that this interest charge does not excuse late payments or limit Best Western's ability to pursue other remedies for non-payment.
Prospective Best Western franchisees should be aware of this late payment policy and factor it into their financial planning. Maintaining timely payments is crucial not only to avoid these charges but also to remain in good standing with the Best Western organization and avoid any disruptions to their membership. Franchisees should set up systems to ensure that all fees, dues, charges, and assessments are paid on time to avoid these penalties.