What is the purpose of the Service Charge for a Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| 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. |
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 service charge is applied if a franchisee does not make payments to Surestay Hotel By Best Western or its affiliates when they are due. This charge functions as a penalty for late payments.
The amount of the service charge is significant: an 18% Annual Percentage Rate (APR). This APR indicates the yearly cost of the outstanding balance if payments are not made on time. It is crucial for prospective franchisees to understand that this is a high interest rate, comparable to credit card interest rates, and can substantially increase the amount owed if payments are delayed.
The service charge is due and payable upon receipt of the statement, meaning that it is added to the franchisee's account as soon as the statement is issued. Franchisees should prioritize timely payments to avoid incurring this charge, as it can impact their profitability and financial stability. Paying on time is a key aspect of maintaining a healthy financial relationship with Surestay Hotel By Best Western.