When are annual dues established, billed, and payable for Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Annual dues are established, billed and payable each year for continuing membership during the succeeding year. Annual dues are recognized as revenue ratably in the year to which the continuing membership applies. Any Member may resign from the Company at any time, but if the Member resigns or is terminated, fees and dues become immediately due and payable per the terms of the applicable contract and are recognized as revenue when cash is received regardless of the term of the contract.
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, annual dues are established, billed, and payable each year for continuing membership during the succeeding year. This means that Surestay Hotel By Best Western franchisees can expect to receive a bill for annual dues each year. These dues must be paid to maintain their membership and continue operating under the Surestay Hotel By Best Western brand.
The FDD also specifies that these annual dues are recognized as revenue ratably over the year to which the continuing membership applies. This accounting practice indicates that Surestay Hotel By Best Western spreads the recognition of these dues as income throughout the year, aligning it with the period the membership covers.
Furthermore, the document notes that if a member resigns or is terminated, all fees and dues become immediately due and payable per the terms of the applicable contract. This clause implies that franchisees should be aware of the specific terms in their franchise agreement regarding resignation or termination, as it could trigger an immediate obligation to pay any outstanding dues.