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General

Industry

Travel and Hospitality

Category

Hotel

SBA Identifier

S2125

Year of Founding

1957

Fees

Marketing Fee

NA

Royalty Fee

5%

Franchise Fee

$4,000-$4,000

Investment Range

$436K-$5.61M

Location units

Total U.S. Locations

41

U.S. Franchised Units

41

U.S. Corporate Units

0

Headquarters (City)

Phoenix

Other

Item 19 - Franchise Financials

No

Financing Availability

yes

Started Offering Franchises

2015

Issuance of FDD Data

04/25/2022

What to know about Best Western franchise?

This Franchise Disclosure Document offers the right to convert an existing hotel to a hotel that utilizes the BW Premier Collection” or BW Signature Collection” name and is included on Best Western International, Inc.’s reservations systems.

Best Western is based in Phoenix, AZ. Scroll down to learn more!

How much does a Best Western franchise cost?

Are you wondering how much is a Best Western franchise? Before starting a Best Western franchise, it is important to know the franchise fee, working capital and other costs required to start the business.

The minimum investment amount required to open a Best Western franchise is $436,300 and can go all the way up to $5,612,350. Keep in mind, you should also allocate additional funds to live off of while the Best Western business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Best Western franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Best Western business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Best Western franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Industry Report Request

Download our guide to compare Best Western. Hotels to the Hotel, Outdoor Travel and Hospitality industry.

Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2017 14 8 3 19
2018 19 5 1 23
2019 28 10 1 37
2020 37 7 6 38

Additional Details

How much does a Best Western franchise owner make?

Best Western franchise earnings and revenue can vary significantly from one franchisee to another.
The Best Western franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Best Western unfortunately does not disclose financials on how much Best Western franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S.

Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, Best Western does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with Best Western franchisees. Do note that Best Western is not alone as about 40% of franchises do not disclose franchisee financial performance.

At Vetted Biz, we suggest you to speak with 5 to 10 Best Western franchisees to understand how much money they are making from their Best Western business.

You should also speak to former Best Western franchisees to understand why they left the system. Did they sell their Best Western at a profit? Were they forced to close their Best Western franchise down because it kept losing money?

What is the Best Western franchise fee?

Owning a Best Western franchise requires 5% royalty fee and a variable marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Best Western Franchise Disclosure Document

Keep in mind, there is also an initial Best Western franchise fee of $4,000 that is included in the initial investment amount of $436,300 to $5,612,350. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Best Western franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Best Western franchise fee of $4,000.

Visit the Best Western metrics tab to explore the financials for this business, royalty and marketing fees compare to other Travel and Hospitality franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Best Western founded?

Best Western started offering franchises in 2015. Best Western was founded 65 years ago in 1957.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Best Western locations are in the U.S.?

As of 2022, there were 41 locations across the U.S. There are also corporate locations. Most Travel and Hospitality franchises like Best Western have more franchised locations than corporate locations.

How many Best Western franchises opened over the past few years?

Over the prior 3 years we have data for, Best Western has opened 27 outlets throughout the U.S. Visit the Best Western metrics tab to explore how the openings compare to other Travel and Hospitality franchises.

How many Best Western franchises closed over the past few years?

Over the prior 3 years we have data for, Best Western has closed 14 outlets throughout the U.S

Visit the Best Western metrics tab to explore how the openings compare to other Travel and Hospitality franchises.

Is Best Western growing? Are they opening more locations than they are closing?

The net unit growth rate for Best Western over the past 3 years is 46%. Over the last year we have data for, Best Western had a net unit growth rate of 8%.

Without a comparison, this number doesn’t mean much. Compare how the Best Western growth rate compares to 2,000+ other franchises and Industry franchises like Best Western. More info in the Best Western metrics tab.

Is Best Western franchise eligible for an SBA Loan?

Best Western is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Best Western franchise was assigned the SBA Franchise ID of S2125 on 10/01/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Best Western that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is Best Western a franchise in the United States?

According to the SBA, Best Western meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Best Western provides you with an FDD if you are in discussion to buy a Best Western.

What is the Best Western Franchise for Sale Rate?

The Best Western systemwide health and franchisee satisfaction can be measured by the Best Westernfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

Best Western franchise for sale rate over the past 3 years is 2%. Over the last year we have data for, Best Western had a franchise for sale rate of 2%.

Without a comparison, this number doesn’t mean much. Compare how the Best Western franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Best Western. More info in the Best Western metrics tab.

What is the Best Western Franchise Failure Rate?

Best Western franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Best Western failure rate over the past 3 years is 34%. Over the last year we have data for, Best Western had a franchise failure rate of 17%.

Without a comparison, this number doesn’t mean much. Compare how the Best Western franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Best Western. More info in the Best Western metrics tab.

How can I find out more details on Best Western franchise?

Visit the Best Western metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Best Western

$3,024,325

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Best Western

5%

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Best Western

$4,000

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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Franchise Disclosure Document

Download Latest FDD (2022)

General

Industry

Travel and Hospitality

Category

Hotel

SBA Identifier

S2125

Year of Founding

1957

Fees

Marketing Fee

NA

Royalty Fee

5%

Franchise Fee

$4,000-$4,000

Investment Range

$436K-$5.61M

Location units

Total U.S. Locations

41

U.S. Franchised Units

41

U.S. Corporate Units

0

Headquarters (City)

Phoenix

Other

Item 19 - Franchise Financials

No

Financing Availability

yes

Started Offering Franchises

2015

Issuance of FDD Data

04/25/2022

Detailed Franchise metrics for Best Western

Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for Best Western below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Best Western

$4,000

Industry median

All franchises median

Unlock premium content

Franchise Disclosure Document

Download Latest FDD (2022)

Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Best Western

4%

34%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Best Western

0%

2%

Industry median

All franchises median

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Business details

Website

https://***********.com

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Business email

**********@******.com

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Mailing address

6201 N. 24th Parkway

State headquarters

Arizona

Key leadership

Best Western

Phone

+1 (000) 0********00

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City

Phoenix

Zip code

85016
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