What is the estimated range for the Insurance expenditure for a Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Insurance (12) | $8,750 - $15,000 | As required | As Required | Agent/Insurer |
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- You must maintain the minimum levels and types of insurance specified in the Manual (as defined in Item 8) at your expense. This insurance must be with insurers having minimum ratings we specify; name as additional insureds the parties we specify in the Manual; and carry the endorsements and notice requirements we specify in the Manual. Insurance premiums vary widely by reason of location, size of hotel and type of coverage purchased. The amounts disclosed in the above tables represent the cost of the annual premium for three months.
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 estimated initial investment for insurance ranges from $8,750 to $15,000. This estimate covers the cost of the annual premium for three months.
The FDD specifies that franchisees must maintain minimum levels and types of insurance as detailed in the Manual. This insurance must be with insurers having minimum ratings specified by Surestay Hotel By Best Western, name specified parties as additional insureds, and carry the endorsements and notice requirements outlined in the Manual.
The FDD also notes that insurance premiums can vary significantly based on factors such as location, the size of the hotel, and the type of coverage purchased. Therefore, the provided range is just an estimate, and the actual cost may differ based on individual circumstances. It is important to note that the amounts listed in the table are non-refundable.