When are Surestay Hotel By Best Western franchisee initial fees due?

According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, the initial franchise fees are due upon the execution of the franchise agreement. This means that a prospective franchisee must pay the initial fee at the time they sign the agreement to become a Surestay Hotel By Best Western franchisee. The revenue from this initial fee is recognized over the initial term of the franchise agreement.

In practical terms, this means that a significant payment is required upfront before the franchisee can begin operations. The initial franchise fee is $25,000, plus $100 per room over 100 rooms. For example, a 150-room hotel would pay $25,000 + (50 rooms * $100/room) = $30,000. This fee compensates Surestay Hotel By Best Western for granting the franchise and providing access to its brand, systems, and support.

This upfront payment is a standard practice in franchising, as it provides the franchisor with capital to cover initial setup costs and support for the new franchisee. However, prospective franchisees should be aware of this immediate financial obligation and factor it into their initial investment calculations. Understanding when fees are due is crucial for managing cash flow and ensuring a smooth transition into the Surestay Hotel By Best Western system.