factual

What is the base initial fee for a Surestay Hotel By Best Western?

Surestay_Hotel_By_Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

All franchisees must pay us an Initial Fee upon signing the Franchise Agreement. The Initial Fee equals $25,000, plus an additional $100 per guest room over 100 guest rooms.

Source: Item 7 — Estimated Initial Investment (FDD pages 35–48)

What This Means (2025 FDD)

According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, the initial franchise fee is $25,000. This fee is paid as a lump sum when signing the Franchise Agreement and is paid to Surestay Hotel By Best Western. However, the initial fee may increase if the hotel has more than 100 rooms.

Specifically, the FDD states that the initial fee equals $25,000, plus an additional $100 per guest room over 100 guest rooms. For example, a hotel with 150 rooms would pay the base fee of $25,000 plus an additional $5,000 (50 rooms x $100), for a total initial fee of $30,000.

It is important to note that this initial fee is just one component of the total estimated initial investment, which also includes expenses such as franchise application fees, impact study fees (if required), renovation or construction costs, furniture, fixtures, equipment, inventory, signage, computer systems, insurance, and other organizational expenses. Prospective franchisees should carefully review all the costs outlined in Item 7 of the FDD and consider their individual circumstances to determine their total investment.

The initial fee is non-refundable, so it's crucial for potential franchisees to conduct thorough due diligence and carefully evaluate the opportunity before signing the Franchise Agreement. This includes reviewing the FDD, speaking with existing franchisees, and seeking professional advice from an attorney and financial advisor.

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.