What is the penalty for opening a Surestay Hotel By Best Western before the opening date?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
fees associated with any additional visits.
- 6.4.4 Opening the Hotel before the Opening Date is a material breach of this Agreement.
- ACTIVE 706805883v5 15 6.4.4.1 You will pay us Liquidated Damages in the amount of One Thousand Dollars ($1,000) per day if you
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, opening the hotel before the designated opening date constitutes a material breach of the franchise agreement. In such a case, the franchisee is obligated to pay Surestay Hotel By Best Western liquidated damages.
The liquidated damages amount to $1,000 per day for each day the hotel is open before the scheduled opening date. This penalty is designed to compensate Surestay Hotel By Best Western for potential losses or damages resulting from the early opening, which could include premature use of the brand's reputation and resources without proper preparation and adherence to brand standards.
This provision underscores the importance of adhering to the agreed-upon opening date and ensuring that all pre-opening requirements are met before commencing operations. Franchisees should carefully plan their pre-opening activities to avoid incurring these daily penalties, as they can quickly accumulate and significantly impact the financial performance of the new Surestay Hotel By Best Western location.