Under what condition can the Board reduce or waive fees for Best Western applicants?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- (A) The Board shall establish Entrance Fees to be paid by Applicants. Such Entrance Fees may be changed by the Board from time to time, but cannot be waived. The exception to this limitation is the offering and acceptance of a Development Incentive.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Board of Directors generally establishes and may change the entrance fees to be paid by applicants. However, these fees cannot be waived, with one exception: the offering and acceptance of a Development Incentive. This means that while the Board has the authority to set and modify fees, they generally cannot reduce or waive them for individual applicants unless a specific Development Incentive is in place.
This policy ensures that Best Western maintains consistent financial obligations for all new members, with the exception of strategic incentives designed to promote development. For a prospective franchisee, this implies that they should not expect to negotiate a reduction or waiver of entrance fees unless they qualify for an existing Development Incentive program. Understanding the criteria and availability of these incentives could be a crucial factor in assessing the financial feasibility of a Best Western franchise.
The Board's ability to offer Development Incentives provides Best Western with a tool to strategically grow its brand by attracting new properties in specific locations or under certain conditions. However, the FDD does not specify the details or criteria for these Development Incentives. A potential franchisee should inquire directly with Best Western about any current Development Incentive programs and whether their property might qualify, as this is the only avenue through which fees might be reduced or waived.