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Under what conditions will the Affiliation Fee be refunded to a new prospective Best Western member?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

redited toward any other payment you must make and is non-refundable.

All new prospective Members must pay the Affiliation Fee before the Board's consideration of the Application for Membership. The Affiliation Fee for a System Hotel is $45,000, plus an additional $200 per guest room over 50 guest rooms up to a maximum of 1,000 rooms. Therefore, the Affiliation Fee for a 75- room Best Western System Hotel is $50,000, of a 90-room Best Western Plus System Hotel is $53,000, of a 120-room Best Western Premier System Hotel is $59,000, of a 100-room @Home by Best Western System Hotel is $55,000, of a 100-room Executive Residency by Best Western is $55,000, of a 100-room Vīb System Hotel is $55,000, of an 80-room GLō System Hotel is $51,000, and of a 90-room Aiden System Hotel is $53,000.

If a new prospective Member's Application for Membership is either (i) presented to the Board by the Application Deadline and the Application for Membership is not approved or (ii) not presented to the Board by the Application Deadline due to the actions of the prospective Member, the entire

Affiliation Fee will be refunded. The Affiliation Fee otherwise becomes non-refundable at the time of signing the Membership Agreement.

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 construction (i.e., 3 years from the date of approval) is therefore $35,000.

Source: Item 5 — Initial Fees (FDD pages 21–24)

What This Means (2025 FDD)

According to Best Western's 2025 Franchise Disclosure Document, the Affiliation Fee is refundable under specific conditions related to the application process. The Affiliation Fee will be refunded if a new prospective member's Application for Membership is presented to the Board by the Application Deadline, but the application is not approved. Additionally, the Affiliation Fee will be refunded if the application is not presented to the Board by the Application Deadline due to actions of the prospective member. However, the Affiliation Fee becomes non-refundable once the Membership Agreement is signed.

Furthermore, if a new prospective member pays an Impact Study Fee of $4,000 and their Application for Membership is presented to the Board by the Application Deadline but is not approved, the entire Affiliation Fee, including the $4,000 Impact Study Fee, will be refunded. Conversely, the $4,000 Impact Study Fee will not be refunded if the application is not presented to the Board by the Application Deadline due to the prospective member's actions, or if the application is approved but the prospective member does not accept the conditions of approval.

In summary, a prospective Best Western franchisee can expect a refund of the Affiliation Fee if their application is either not approved by the Board after being submitted by the deadline, or if the application is not submitted by the deadline due to the actions of the prospective member. However, it is crucial to note that once the Membership Agreement is signed, the Affiliation Fee becomes non-refundable, highlighting the importance of carefully reviewing all terms and conditions before finalizing the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.