factual

What is the purpose of the Commission Junction fee for a Surestay Hotel By Best Western?

Surestay_Hotel_By_Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

| Type of Fee | Amount | Due Date | Remarks | |---|---|---|---| | Commission Junction | 10% of GRR for each reservation associated with a banner. See Note 1. | Due and payable monthly upon statement receipt. | Commission charge for reservations which result from a banner ad placed on a publisher’s network. | | Central Bill Revenue | Central Bill reservation revenue credited monthly to your account. | Credited one month in arrears. | Credit for reservations revenue booked by tour operators and corporate accounts through the Central Bill program. | | Other Fees | | | | | Guest Service Satisfaction (GSS) Program | $25 per month. | Due and payable monthly upon statement receipt. | Fee for guest satisfaction survey. Statements are dated on the 1st of the month and are typically emailed within 6 business days. | | On-Boarding | Currently $3,000. | Due and payable monthly upon statement receipt. | Sales On-Boarding training includes both live and virtual training. Payable 90 days after activation on the reservation system. | | Distribution System Photographs Fee | $1,150 to $5,000 per Hotel plus the cost of any additional photographs a hotel may choose to have taken outside the standard photography package. | Due and payable monthly upon statement receipt. | Fee for online still photographs. System Hotels are required to renew their photos every three years. | | Annual QA Assessment | Currently $1,000. | Due and payable monthly upon statement receipt. | Payable following an annual QA assessment. | | Overall Experience Threshold Fee | $2,500 fee per default. | Due and payable upon statement receipt. | Assessed for your second and each subsequent consecutive instance of failing to meet or exceed the SureStay North America GSS Program Overall Experience threshold. |

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.
Service Charge 18% Annual Percentage Rate (“APR”) Due and payable upon statement receipt. Service charges if you do not make any payment to us or our affiliates when due.
Taxes Actual amount. On demand. If any sales, use, gross receipts or similar tax is imposed on us for the receipt of any payments you are required to make to us under the Franchise Agreement, then you must reimburse us the actual amount.
Optional Programs
Supply and Studio Design Varies depending on level and amount of services and support. Due and payable monthly upon statement receipt. Access to supply procurement and negotiated brand pricing using the Supply Endorsed Vendor program. Affordable interior design creation and conceptual architectural service (for exteriors) available through the Studio Design team of interior designers and architects on a contract basis.
SureStay Property Revenue Manager (“PRM”) Per month fee based on size of the hotel: $1,025 for 1-120 rooms $1,230 for 121-200 rooms $1,437 for 201+ rooms Due and payable monthly upon statement receipt.

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 Commission Junction fee is a commission charge for reservations that result from a banner ad placed on a publisher's network. This fee is 10% of Gross Rooms Revenue (GRR) for each reservation associated with a banner. GRR includes all revenues from guest room rentals, loyalty program redemptions, breakfast revenues included in the room rate, and guaranteed no-show revenue, less any guest room rebates or overcharges. It does not include taxes collected from guests.

The Commission Junction fee is due monthly upon receipt of the statement. This means that Surestay Hotel By Best Western franchisees will need to monitor their reservations and associated revenue carefully to ensure accurate payment of this fee. Franchisees should also understand how GRR is calculated to avoid discrepancies.

In practical terms, this fee incentivizes the use of banner advertising to drive reservations. However, it also means that franchisees need to factor in this 10% cost when evaluating the ROI of their banner advertising campaigns. It is important for franchisees to track which reservations are generated from these ads to properly allocate the expense. Franchisees should also be aware that Surestay Hotel By Best Western may automatically debit the hotel's bank account for the amount owed.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.