What is the purpose of the ACH Processing Charge for a Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| agreement for or begin construction of a competing brand within 1 year after termination. | |||
| ACH Processing Charge | $50 per resubmission | Due and payable upon statement receipt. | Payable if we have to resubmit an ACH payment to the bank after an initial ACH payment is rejected for insufficient funds. |
Source: Item 6 — OTHER FEES (FDD pages 24–35)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, the ACH Processing Charge is incurred when an ACH payment is rejected due to insufficient funds, requiring resubmission. This fee is $50 per resubmission and is due upon receipt of the statement.
For a Surestay Hotel By Best Western franchisee, this means that if an automatic payment from their bank account to the franchisor fails because of insufficient funds, they will be charged an additional $50 for each attempt to process the payment. This is in addition to any service charges that may be applied for late payments.
It is important for franchisees to maintain sufficient funds in their accounts to avoid these charges. Franchisees should also be aware of the due dates for payments to avoid any late payment penalties or resubmission fees. This type of fee is relatively common in franchising, as it covers the administrative costs incurred by the franchisor when payments are not processed successfully the first time.