By what day of each month must the Monthly Fees be paid to Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Monthly fees and assessments (which include advertising, sales and marketing and reimbursement for the Company's technology expenses) represent fixed and variable consideration and are billed monthly and recognized as revenue in the same month as the services are provided and charges become fixed or determinable and payable.
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
Based on the 2025 Surestay Hotel By Best Western Franchise Disclosure Document, monthly fees and assessments, which include advertising, sales and marketing, and technology expense reimbursements, are billed monthly. These fees are recognized as revenue in the same month the services are provided, and charges become fixed, determinable, and payable. The FDD does not specify a particular date by which these fees must be paid each month.
As the payment date for monthly fees is not specified in the FDD, prospective Surestay Hotel By Best Western franchisees should clarify the exact due date with the franchisor during their due diligence. Understanding the payment terms is crucial for managing cash flow and avoiding late payment penalties.
It is common practice in the franchise industry for franchisors to set specific due dates for recurring fees, such as the 1st, 15th, or last day of the month. This allows franchisees to plan their finances accordingly. Therefore, it is important for potential franchisees to obtain this information from Surestay Hotel By Best Western before signing the franchise agreement.