When are Taxes due 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. |
| 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 |
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, franchisees are responsible for reimbursing Surestay Hotel By Best Western for any sales, use, gross receipts, or similar taxes imposed on them related to payments made under the Franchise Agreement. These taxes are due to Surestay Hotel By Best Western 'on demand,' meaning the franchisee must pay when Surestay Hotel By Best Western requests reimbursement.
This arrangement means that the timing and amount of tax reimbursement depend entirely on when Surestay Hotel By Best Western incurs these tax obligations and chooses to seek reimbursement from the franchisee. The franchisee should be prepared to pay these taxes at any time. This differs from typical tax payments, which have fixed schedules.
As a prospective franchisee, it is important to understand what types of payments under the Franchise Agreement might trigger these taxes and to estimate the potential amount of these taxes to factor them into your operating budget. You should discuss with Surestay Hotel By Best Western the specific types of taxes that this clause covers and how frequently they typically demand reimbursement to better prepare for this obligation.