factual

What is the initial fee for a Surestay Hotel By Best Western franchise, and when is it due?

Surestay_Hotel_By_Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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 the 2025 Franchise Disclosure Document, the initial fee for a Surestay Hotel By Best Western franchise is $25,000. However, this fee can increase if the hotel has more than 100 guest rooms. Specifically, the initial fee is $25,000, plus an additional $100 per guest room over 100 guest rooms. This fee is due upon signing the Franchise Agreement, and it is paid to Surestay Hotel By Best Western.

For a prospective Surestay Hotel By Best Western franchisee, this means that the upfront cost will vary depending on the size of the hotel. For example, a hotel with 150 rooms would pay an initial fee of $30,000 ($25,000 + (50 rooms x $100)). This initial fee is a one-time payment, but it's important to factor it into the total initial investment.

It's also important to note that the initial fee is non-refundable, as stated in the explanatory notes of Item 7. This means that if the franchise agreement is terminated for any reason, the franchisee will not receive a refund of the initial fee. Therefore, prospective franchisees should carefully consider their decision before signing the Franchise Agreement and paying the initial fee.

In addition to the initial fee, prospective franchisees should also be aware of other fees that may be required, such as the Franchise Application Fee of $2,500 and the Impact Study Fee, which ranges from $0 to $4,000. These fees, along with other estimated initial investment costs, are detailed in Item 7 of the Franchise Disclosure Document.

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.