Does Surestay Hotel By Best Western pay interest on overpayments discovered during an audit?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.2.2 If the audit discloses an overpayment, we will credit this overpayment against your future payments due under this Agreement, without interest, or, if no future payments are due under this Agreement, we will promptly pay you the amount of the overpayment without interest.
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to the 2025 Surestay Hotel By Best Western Franchise Disclosure Document, if an audit reveals an overpayment by the franchisee, Surestay Hotel By Best Western will not pay any interest on the overpayment. Instead, Surestay Hotel By Best Western will credit the overpayment amount against the franchisee's future payments that are due under the Franchise Agreement.
However, if there are no future payments due from the franchisee under the agreement, Surestay Hotel By Best Western will promptly pay the franchisee the amount of the overpayment, but again, without any interest. This policy is clearly outlined in the FDD, ensuring that franchisees are aware of how overpayments will be handled.
This practice of not paying interest on overpayments is relatively common in the franchise industry. Franchisees should be aware of this policy and factor it into their financial planning. While the immediate reimbursement or credit is beneficial, the lack of interest might be a consideration for some franchisees, especially if the overpayment is substantial.