What is the initial franchise fee for a 60-room Surestay Hotel By Best Western, and when is it due?
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 |
|---|---|---|---|---|
| Franchise Application | $2,500 | Lump Sum | With Franchise | Us |
| Fee (1) | Application |
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 initial franchise fee for a standard 60-room hotel is $25,000. This fee is paid as a lump sum. The initial fee is due upon the signing of the Franchise Agreement.
Prospective franchisees should note that this initial fee is non-refundable, as stated in the explanatory notes. This means that regardless of whether the franchise proceeds to opening, the $25,000 is retained by Surestay Hotel By Best Western.
It's important to consider this fee in the context of the total estimated initial investment, which includes other costs such as construction, furniture, fixtures, equipment, inventory, signage, and computer systems. These additional costs can range from hundreds of thousands to millions of dollars, depending on whether it is new construction or a conversion of an existing hotel.