Under the Surestay Hotel By Best Western agreement, what must a franchisee do before opening the hotel?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Applicant must execute the Agreement and pay the Initial Fee prior to execution by SureStay. Unless otherwise agreed, (i) if a conversion hotel, Applicant will have ninety (90) days from the Effective Date of the Agreement to activate as a SureStay branded hotel; (ii) if a new construction hotel, Applicant will have two (2) years from the Effective Date of the Agreement to activate as a SureStay branded hotel. Applicant may not hold the hotel out to the public (e.g., market, sell, advertise, promote, etc.) as a SureStay branded hotel until all conditions and requirements are met.
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, a franchisee must execute the franchise agreement and pay the initial fee before Surestay Hotel By Best Western executes the agreement. For a conversion hotel, the franchisee has 90 days from the effective date of the agreement to activate as a Surestay Hotel By Best Western branded hotel. For new construction, the franchisee has two years from the effective date to activate the hotel.
Prior to meeting all conditions and requirements, a franchisee cannot market, sell, advertise, or promote the hotel as a Surestay Hotel By Best Western branded hotel. This restriction ensures that the hotel meets Surestay Hotel By Best Western's standards before being presented to the public under its brand name.
These requirements are typical in the franchise industry, as franchisors need to ensure brand consistency and quality control. By setting these conditions, Surestay Hotel By Best Western aims to protect its brand reputation and ensure that customers receive a consistent experience across all franchised locations.