When does the franchisee begin paying monthly fees to Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
: $25,000 plus $100 per room over 100 rooms Monthly Fees: Monthly Sales and Marketing Fee: Four percent (4.0%) of the Hotel's Gross Rooms Revenue for the preceding calendar month. The
Monthly Sales and Marketing Fee is subject to change by
us
Monthly Royalty Fee: Four percent (4.0%) of the Hotel's Gross
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, franchisees are required to pay two types of monthly fees: a Monthly Sales and Marketing Fee and a Monthly Royalty Fee. Both of these fees are calculated as four percent (4.0%) of the Hotel's Gross Rooms Revenue for the preceding calendar month.
This means that Surestay Hotel By Best Western franchisees will begin paying these monthly fees shortly after their hotel begins generating revenue from room rentals. The fees are based on the previous month's gross rooms revenue, so the first payment will be due after the first full calendar month of operation.
It's important to note that the Monthly Sales and Marketing Fee is subject to change by Surestay Hotel By Best Western. This implies that the franchisee's monthly expenses could potentially increase over time, impacting their profitability. Franchisees should factor in potential fee increases when projecting their financial performance.