What pre-activation expenses will a Surestay Hotel By Best Western franchisee incur before opening?

According to the 2025 FDD, Surestay Hotel By Best Western franchisees will face several pre-activation expenses before opening their hotel. These expenses include a Pre-Activation Re-Inspection Fee ranging from $0 to $2,500, plus the cost of a free room night for the inspector, payable if the hotel fails the initial pre-activation checklist and requires a follow-up inspection. Additionally, franchisees must pay a Distribution System Photographs Fee, which ranges from $1,150 to $5,000, to obtain still photographs of their hotel for the distribution system, along with the cost of one room night's accommodation for the photographer, if needed.

Other pre-activation costs for Surestay Hotel By Best Western include expenses for salaries and wages, personnel training, sales, administrative and general expenses, project management, technical services, advertising, and opening festivities. The FDD also lists several other fees that may be required before opening, such as the Franchise Application Fee of $2,500, the Initial Fee of $25,000, and an Impact Study Fee ranging from $0 to $4,000, if required. Franchisees may also need to budget for renovation work, furniture, fixtures, equipment, inventory, signage, computer systems, insurance, organizational expenses, and permits and licenses.

Prospective Surestay Hotel By Best Western franchisees should carefully review Item 7 of the FDD, which provides a detailed breakdown of all estimated initial investment costs. Understanding these pre-activation expenses is crucial for budgeting and financial planning. Franchisees should also inquire about the specific requirements and costs associated with pre-activation to ensure they are adequately prepared for the opening of their Surestay Hotel By Best Western franchise.