How much does a Best Western franchise cost in 2026?
Last updated: By Nate Solomon, Matthews Hotel Markets
Best Western is a membership association, and its disclosure document issued February 27, 2026 prices a membership, not a standard franchise. The entrance fee for a 75-room Best Western is $54,000. Monthly fees are 5 percent of property room revenue, marketing and technology fees 2.10 percent, plus per-room dues and advertising. Item 7 estimates $581,925 to $2,557,075 to convert a 75-room hotel.[1]
Key takeaways
- Entrance fee: a $4,000 evaluation fee plus an affiliation fee of $45,000 and $200 per room over 50.[1]
- Monthly fees: 5 percent of property room revenue, or 3.5 percent for a member controlled by owners who were members on July 1, 2016.[1]
- Marketing and technology fees: 2.10 percent of property room revenue. Advertising assessment: $16.86 per room per month.[1]
- Term: 20 years, renewing automatically for 10-year terms. Membership terminates on a sale of the hotel unless it is transferred with Best Western's approval.[1]
- Fees change every year. Best Western's current FDD and membership documents govern, not this page.
Is Best Western a franchise or a membership?
Best Western International, Inc. describes itself in its 2026 FDD as an Arizona nonprofit corporation that operates as a membership association and licensor, and the hotel owner signs a membership agreement as a member.[1]
The FDD says Best Western began granting memberships under a franchise disclosure document in April 2020, that certain state actions have alleged its memberships are franchises, and that it neither admits nor denies those allegations (Item 1, p. 1).[1] For an owner comparing flags, the practical differences are in the fee structure and the governance. Several Best Western fees are set per room in dollars, not as a percentage of revenue, and the FDD marks some fees as subject to amendment by a majority vote of member hotels. The board's annual increase in dues is capped at the lesser of 5 percent or the prior year's consumer price inflation unless a majority of hotels vote for more (Item 6, pp. 18-19).[1]
The same document covers Best Western, Best Western Plus, Best Western Premier, Executive Residency, @Home, GLo and Aiden. SureStay hotels are franchised by a subsidiary, SureStay, Inc., and the BW Premier and BW Signature collections are offered under a separate disclosure document, so this page does not cover them (Item 1, pp. 1-2).[1] The general term is defined at franchise disclosure document.
What does Best Western charge up front?
Best Western's 2026 Item 5 sets an entrance fee made of a non-refundable $4,000 evaluation fee plus an affiliation fee of $45,000, with $200 added for each guest room over 50, up to 1,000 rooms.[1]
The FDD works the affiliation fee out as $50,000 for a 75-room Best Western, $53,000 for a 90-room Best Western Plus and $59,000 for a 120-room Best Western Premier. If the board does not approve the application, the affiliation fee is refunded. An optional $4,000 impact study fee is credited toward the affiliation fee on approval. Best Western says it accepted decreased entrance fees of $0 to $25,000 in fiscal 2025 after arm's-length negotiation (Item 5, pp. 14-17).[1]
An approved new-build applicant must start construction within 12 months. Extensions come in six-month increments at $5,000 for the first and $10,000 for each later one, to a maximum of three years and $35,000. An extension of the opening date costs one quarter of the entrance fee per three months, which the FDD states as $13,500 for a 75-room Best Western. Set-up charges include $1,500 for the AutoClerk property management system, $1,500 for the two-way reservation interface, $550 for interface hardware, $2,100 to $3,500 for the managed security service, and a photography package from $1,200 (Item 5, pp. 15-17).[1]
What are the ongoing Best Western fees?
Best Western's 2026 Item 6 lists monthly fees of 5 percent of property room revenue, marketing and technology fees of 2.10 percent, an advertising assessment of $16.86 per room per month, and annual dues on a per-room scale.[1]
The monthly fees are 3.5 percent, not 5 percent, for a member whose ownership is at least 50 percent held by owners who were Best Western members on July 1, 2016. Annual dues are $2,345.45 for the first 20 rooms, $78.85 per room for rooms 21 to 50, $30.66 per room for rooms 51 to 400, and $3.07 per room above 400. Property room revenue includes revenue from loyalty redemptions, guaranteed no-show revenue, and the breakfast share of a rate that includes breakfast (Item 6, pp. 18-19, 34).[1]
The Best Western Rewards fee is 5.5 percent of property room revenue on stays that earn points, at 10 points per dollar and $0.0055 per point. It is 2.75 percent for Executive Residency and @Home. On a newly enrolled member's stay the fee is rebated, in full with a valid email address and at half without one, up to five nights and $500 (Item 6, pp. 20-21).[1]
Distribution is charged per booking or as commission: $7.90 per global distribution system booking, $4.60 per third-party internet booking, and 10 percent of property room revenue on reservations from performance-based digital marketing. New hotels also pay $15,000 for the on-boarding program over 12 months. Property management and guest messaging support is $3.97 per room per month, the security service $130 per month, and the annual convention $949 whether or not attended (Item 6, pp. 19, 23, 25-26).[1] These charges apply to different bases, so they cannot be added into one rate.
How much does it cost to convert to or build a Best Western?
Best Western's 2026 Item 7 estimates $581,925 to $2,557,075 to convert a 75-room hotel to a Best Western, and $6,130,275 to $12,658,075 to build one.[1]
In the 75-room conversion table, renovation work runs $0 to $677,250 and furniture, fixtures and equipment $0 to $934,500, because Best Western says an existing hotel may or may not need work to conform. The computer system is $117,250 to $118,650, and three months of additional funds $270,900 to $291,900. The tables carry no line for land or a purchase price, and the FDD says the estimates do not include debt service or lease costs (Item 7, pp. 35-37, 55-57).[1] Best Western does not state per-room totals, so none is printed here.
For a 90-room Best Western Plus the estimates are $671,325 to $3,209,625 for a conversion and $7,795,575 to $15,802,375 for new construction. For a 120-room Best Western Premier they are $962,225 to $7,441,025 and $17,000,975 to $32,499,275 (Item 7, pp. 38-42).[1] Financing for this work is covered at brand conversion financing and PIP and renovation loans. A design visit to create a property improvement plan is $2,650 (Item 6, p. 29).[1] The plan itself is defined at PIP.
How long does a Best Western membership last?
The initial Best Western term starts when the hotel is activated on the reservations system and ends on the last day of the fiscal year in which the 240th month falls, and the membership agreement then renews automatically for successive 10-year terms.[1]
Either party can stop the renewal by giving written notice at least 12 months before the end of the current term. The member does not sign a new membership agreement on renewal (Item 17, p. 84).[1]
A member may resign from the membership. After opening, resignation or termination carries liquidated damages equal to the lesser of 48 months of average monthly fees and assessments, or those fees and assessments for the months remaining in the term, based on the prior 12 months. Before opening, the figure is $2,000 per authorized guest room. Continued use of the marks more than 15 days after the membership ends costs 15 percent of the hotel's average room rate times its total rooms, per day (Item 6, pp. 30-31; Item 17, pp. 85-86).[1]
What happens to the Best Western membership when I sell the hotel?
The Best Western membership agreement terminates on a sale or lease of the hotel or a transfer of control, unless the membership is transferred to the buyer with Best Western's prior approval.[1]
To transfer a membership with a sale, the hotel must have passed its past two inspections and comply with the current design program, the seller must give the buyer the required documents, and the seller must be current on all dues, fees, assessments and conditions of membership (Item 17, pp. 85-87).[1]
The transfer fee for a change of 50 percent or more of the ownership is one half of the then current entrance fee, due within 20 days of the sale. Item 7 says a new member buying a membership from an existing member pays that transfer fee in place of an entrance fee. A buyout of existing partners of 50 percent or more is one quarter of the entrance fee (Item 6, p. 27; Item 7, p. 53).[1] The FDD lists no right of first refusal and no option for Best Western to buy the hotel (Item 17, p. 87).[1] Best Western hotels on the market are listed at Best Western hotels for sale, and the flag decision is weighed at Should I buy a branded or independent hotel?.
Does Best Western publish hotel performance in Item 19?
No. Best Western's 2026 Item 19 states that it makes no representations about a member's future financial performance or the past financial performance of company-owned or member-owned hotels.[1]
The FDD adds that Best Western does not authorize its employees or representatives to make such representations, and that a buyer of an existing hotel may be given that hotel's actual records (Item 19, p. 89).[1] So this page reports no occupancy, rate or revenue figures for Best Western hotels. Item 20 does report the count: 1,748 licensed and 2 company-owned hotels at the end of 2025, down from 1,768 and 2 a year earlier (Item 20, pp. 89-90).[1]
Best Western membership fees, 2026 Membership FDD issued February 27, 2026
| Fee | Amount | Where in the FDD |
|---|---|---|
| Evaluation fee | $4,000, non-refundable[1] | Item 5, p. 15 |
| Affiliation fee | $45,000 plus $200 per room over 50, up to 1,000 rooms; $50,000 at 75 rooms[1] | Item 5, p. 15 |
| Monthly fees | 5% of property room revenue; 3.5% for qualifying pre-July 2016 member ownership[1] | Item 6, p. 18 |
| Marketing and technology fees | 2.10% of property room revenue[1] | Item 6, p. 19 |
| Advertising assessment | $16.86 per room per month[1] | Item 6, p. 18 |
| Annual dues | $2,345.45 for 20 rooms, plus $78.85 per room for rooms 21 to 50 and $30.66 per room for rooms 51 to 400[1] | Item 6, p. 18 |
| Best Western Rewards fee | 5.5% of property room revenue on point-earning stays[1] | Item 6, p. 20 |
| GDS and third-party internet booking fees | $7.90 and $4.60 per booking[1] | Item 6, p. 19 |
| Performance-based marketing commission | 10% of property room revenue on reservations from a digital opportunity[1] | Item 6, p. 19 |
| Property management and guest messaging support | $3.97 per room per month[1] | Item 6, p. 23 |
| On-boarding program, new hotels | $15,000, billed over 12 months[1] | Item 6, p. 25 |
| Transfer fee, 50% or more change of ownership | One half of the then current entrance fee[1] | Item 6, p. 27 |
| Design visit, including to create a PIP | $2,650[1] | Item 6, p. 29 |
| Liquidated damages, after opening | Lesser of 48 months of average monthly fees and assessments, or the months remaining in the term[1] | Item 6, pp. 30-31 |
| Estimated initial investment, 75-room Best Western conversion | $581,925 to $2,557,075[1] | Item 7, p. 37 |
| Estimated initial investment, new 75-room Best Western | $6,130,275 to $12,658,075[1] | Item 7, p. 36 |
Worked example
Hypothetical: a year of Best Western fees on assumed room revenue
Hypothetical. Assume a 75-room Best Western earns $2,000,000 of property room revenue in a year. The revenue figure and the loyalty share below are assumptions for arithmetic. They are not forecasts and they are not figures from the FDD.
Monthly fees at 5 percent: $2,000,000 x 0.05 = $100,000.[1]
Marketing and technology fees at 2.10 percent: $2,000,000 x 0.021 = $42,000.[1]
Advertising assessment: $16.86 x 75 rooms x 12 months = $15,174.[1]
Annual dues: $2,345.45 + (30 x $78.85) + (25 x $30.66) = $2,345.45 + $2,365.50 + $766.50 = $5,477.45.[1]
Together: $162,651.45, or about 8.13 percent of room revenue. At the 3.5 percent monthly fee rate the first line would be $70,000.
If $600,000 of that revenue is on stays that earn Best Western Rewards points, the 5.5 percent rewards fee is $33,000.[1] Booking fees, commissions, technology support, training and convention charges come on top and depend on the hotel, so they are not estimated here.
Frequently asked
- How much does a Best Western franchise cost?
- For a 75-room hotel, the 2026 FDD lists a $54,000 entrance fee, monthly fees of 5 percent of room revenue, marketing and technology fees of 2.10 percent, and per-room dues and advertising. Item 7 estimates $581,925 to $2,557,075 for a conversion.[1]
- Is Best Western a franchise?
- Best Western's FDD describes it as an Arizona nonprofit membership association and licensor. Owners sign a membership agreement. The FDD notes that certain state actions have alleged the memberships are franchises, which Best Western neither admits nor denies.[1]
- I'm buying a Best Western. Does the membership come with the hotel?
- Not automatically. The membership agreement terminates on a sale unless Best Western approves a transfer. The hotel must have passed its past two inspections, and the transfer fee is one half of the then current entrance fee.[1]
- How long is a Best Western agreement?
- About 20 years from activation on the reservations system, then automatic 10-year renewals unless either party gives 12 months' written notice. No new agreement is signed on renewal.[1]
- What does it cost to leave Best Western early?
- After opening, the lesser of 48 months of average monthly fees and assessments, or those fees for the months remaining in the term. Before opening, $2,000 per authorized guest room.[1]
- Does Best Western disclose what its hotels earn?
- No. The 2026 Item 19 states that Best Western makes no financial performance representations. A buyer of an existing hotel may be given that hotel's actual records.[1]
- Will these Best Western fees be the same next year?
- Not necessarily. The FDD says its Item 6 fees apply to fiscal year 2026 and that fees, dues and assessments are subject to change, some only within stated caps or by member vote. The current documents govern.[1]
Who wrote this
Hospitality Associate, Matthews Hotel Markets
(512) 839-6999nate.solomon@matthews.comLinkedIn
Reviewed by Luke Thompson, VP & Director, Capital Markets.
Sources
- Best Western International, Inc. 2026 Membership Franchise Disclosure Document (issued February 27, 2026): Item 1, pp. 1-2; Item 5, pp. 14-17; Item 6, pp. 18-34; Item 7, pp. 35-57; Item 17, pp. 84-88; Item 19, p. 89; Item 20, pp. 89-90. Wisconsin DFI franchise registration file 640279 · Best Western International, Inc., filed with the Wisconsin Department of Financial Institutions · accessed September 18, 2026
- Matthews Hotel Markets September 2026 rate sheet · Matthews Hotel Markets · accessed September 18, 2026
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- How do I finance a hotel PIP or renovation?
- Should I buy a branded or independent hotel?
Terms defined in the glossary
Our own data
Matthews Hotel Markets sells and finances franchised hotels, so we read these disclosure documents alongside owners and buyers.