Under what circumstances might the Opening Date Extension Fee be refunded to a Best Western franchisee?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not request an extension, you will not be required to pay any Opening Date Extension Fee. If your Property opens prior to the expiration of the extension, the applicable Opening Date Extension Fee may be refunded. The Opening Date Extension Fee is otherwise nonrefundable. The Opening Date Extension Fee was applied uniformly to all Members in our last fiscal year.
Source: Item 5 — Initial Fees (FDD pages 21–24)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Opening Date Extension Fee is potentially refundable under a specific circumstance. If a Best Western franchisee pays the Opening Date Extension Fee to extend the time required to complete construction or renovations and open their property, the fee may be refunded if the property opens prior to the expiration of the extension.
In practical terms, this means that if a Best Western franchisee anticipates delays in opening their hotel and pays the extension fee, but then manages to expedite the construction or renovation process and open before the extended deadline, they could receive a refund of the extension fee. This provides an incentive for franchisees to complete their projects as quickly as possible, even after requesting an extension.
However, it's important to note that the FDD states the Opening Date Extension Fee is otherwise nonrefundable. Therefore, if the Best Western property opens after the original deadline but still within the extended timeframe, or if the property fails to open at all, the franchisee will not receive a refund of the Opening Date Extension Fee. Franchisees should carefully consider their project timelines and potential delays before requesting an extension and paying the associated fee.