Best Western Franchise Cost, Revenue & Review 2026
- Investment
- $582K – $2.6M
- Disclosed sales
- not disclosed
- SBA charge-off
- 8.8%
- on 418 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Best Western is a hotel franchise of independently owned properties spanning economy to upper-midscale tiers. Franchisees own and run individual hotels, tapping the brand's reservation system, marketing, and loyalty program.
FranchiseVerdict summary · 2026
A Best Western franchise requires a total initial investment of $582K – $2.6M and an ongoing 5.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 8.8% charge-off rate across 418 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $582K – $2.6M
- 21st pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 1,750
- 72nd pct Lodging
- SBA charge-off
- 8.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $582K – $2.6M, 5.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 61/100 (higher is better). SBA loan charge-off rate of 8.8% across 418 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -20 franchised outlets in the latest year (32 opened, 52 closed); 7 signed but not yet open (Item 20).
- LEGAL25 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Best Western International, Inc.
- CEO title
- President and Chief Executive Officer
- Lawrence M. Cuculic
- Incorporated in
- AZ
- HQ
- 6201 N. 24th Parkway, Phoenix, AZ 85016
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $547.5M
- vs $520.9M prior year
Overview
About
- CEO
- Lawrence M. Cuculic
- Headquarters
- AZ
- Founded
- 1957
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 82% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
The filing does not state an initial franchise fee.
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Impact Study Fee | $0 | $4K | |
| Entrance Fee | $54K | $54K | |
| Proposed Construction Extension Fee | $0 | $35K | |
| Opening Date Extension Fee | $0 | $14K | |
| Distribution Photography Package Fee | $1K | $8K | |
| Renovation Work | $0 | $677K | |
| Furniture, Fixtures and Equipment | $0 | $935K | |
| Inventory and Operating Equipment | $105K | $242K | |
| Signage | $21K | $47K | |
| Computer System | $117K | $119K | |
| Insurance | $8K | $13K | |
| Organizational Expense | $1K | $2K | |
| Permits and Licenses | $0 | $32K | |
| Initial Training Fees | $3K | $6K | |
| Miscellaneous Preopening and Project Management Expenses | $0 | $79K | |
| Green Key Global Certification | $675 | $675 | |
| Additional Funds (3 months) | $271K | $292K | |
| Total initial investment | $582K | $2.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $582K – $2.6M
- Top 40% of category vs category
- Liquid capital req'd
- $271K – $292K
- Top 40% of category vs category
- Franchise fee
- N/A
- Fee not disclosed
- Royalty
- 5.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- Advertising Assessment $16.86 per room per month (per-roo…
- Total fee load
- 5.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Training fee | $3K |
| Inventory (initial) | $105K – $242K |
| Total fee load | 5.1% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Best Western makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Best Western unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 5.1% — below the Lodging median of 8.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -2.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How Best Western Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,750
- Opened
- 32
- Last reporting year
- Closed
- 52
- Terminated
- 11
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 39
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.6%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -2.9%
- Net unit change over 3 years
- 3-yr CAGR
- -2.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 11
- Not renewed
- 39
- Transferred
- 72
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 7
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 45
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 48 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
1,819 current owners across 188 states.
- SA 95
- CO 56
- CA 52
- LA 51
- MA 46
- MO 42
- BR 40
- PA 36
- WA 34
- GR 30
- WI 30
- CH 29
- +176 more states
Counts only, from the list the franchisor prints in Item 20; 66 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 418
- Loan volume
- $710.6M
- Median loan
- $1.3M
- 50th percentile
- Charge-off rate
- 8.8%
- on 418 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 91.2%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 147
- Defaults
- 34
- Typical loan rate
- 5.4%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- brand above franchise avg ↑
- Jobs supported
- 3,937
- 0.6 per loan
- Lender concentration
- 6%
- top lender's share
Borrower mix: 33% went to startups / new businesses, 67% to established operators
Franchise vs independent — in hotels (except casino hotels) and motels, franchised businesses charge off at 6.3% vs 9.2% for independents — franchising is associated with 32% lower SBA default risk in this category.
Vintage analysis
Best Western charge-off rate by loan vintage
Top lenders financing Best Western franchisees
Showing 3 of 147 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Best Western from SBA 7(a) FOIA data.
- Principal loss rate
- 3.8%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 5.41%
- Avg chargeoff amount
- $794K
- Lender concentration
- 6.2%
- Job velocity
- 0.6 per $100K
- NAICS benchmark
- 7.6%
- NAICS 721110
- Jobs supported
- 3,937
Top SBA lendersTop lender holds 6% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 26 | $27.7M | 15.4% |
| 2 | First Western SBLC, Inc | 22 | $35.0M | 0.0% |
| 3 | Business Loan Center, LLC | 21 | $19.7M | 19.0% |
| 4 | Bank of Hope | 16 | $44.9M | 0.0% |
| 5 | Comerica Bank | 15 | $13.5M | 0.0% |
| 6 | Columbia Bank | 13 | $39.4M | 8.3% |
| 7 | First-Citizens Bank & Trust Company | 9 | $11.6M | 25.0% |
| 8 | GE Capital Small Business Finance Corporation | 8 | $9.7M | 12.5% |
| 9 | Readycap Lending, LLC | 8 | $13.6M | 37.5% |
| 10 | BankUnited, National Association | 8 | $20.5M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 78 | 6 | 8.5% |
| CACalifornia | 53 | 1 | 2.1% |
| GAGeorgia | 24 | 0 | 0.0% |
| INIndiana | 19 | 4 | 23.5% |
| OHOhio | 19 | 3 | 16.7% |
| COColorado | 15 | 3 | 20.0% |
| FLFlorida | 14 | 0 | 0.0% |
| ALAlabama | 13 | 2 | 18.2% |
| NCNorth Carolina | 13 | 1 | 7.7% |
| OROregon | 12 | 1 | 8.3% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 8.8% — 45% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Best Western faces regulatory headwinds, declining membership, systemic franchisee collection actions, and undisclosed financial performance metrics, making this a high-caution investment despite long 20-year terms and protected territories.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Most cases involve franchisor suing former members for unpaid fees and dues following termination or self-termination, with counterclaims by former members for wrongful termination. Several regulatory actions by state securities/franchise regulators alleging membership agreements constitute franchises requiring registration. 8 new actions filed in 2025 fiscal year for unpaid fees and/or trademark infringement.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited consolidated TOTAL REVENUES for fiscal year ended November 30, 2025 = $547,544K, comprised of Fees, dues and assessments $304,904K; Program revenues $179,735K; Other revenues $62,905K. Prior year (FY2024) total revenues $520,942K. Item 5 separately states FY2025 total revenue of $588 million on a different basis. Net worth = Total Net Assets (nonprofit membership association). Net income = Excess of revenues over expenses attributable to Best Western International, Inc. ($55,270K).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 61 / 100 verdict
- 01MINORDeclining unit count of -1.1% YoY indicates shrinking system despite 1,748 locations
- 02HIGHMultiple active litigation cases across 4+ states challenging franchise classification and membership structure suggests regulatory and structural vulnerability
- 03MINORFranchisor initiated numerous collection actions for unpaid fees during last fiscal year, signaling cash flow stress among franchisees and potential systemic profitability issues
- 04MINORRoyalty structure tied to 'Property Room Revenue' is non-standard and unclear, creating potential disputes over revenue calculation and fee obligations
- 05HIGHHigh franchise fee ($45,000) combined with declining units and litigation creates unfavorable risk-reward profile
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | AZ |
| Litigation count | 25 |
View Item 3 litigation summary
Most cases involve franchisor suing former members for unpaid fees and dues following termination or self-termination, with counterclaims by former members for wrongful termination. Several regulatory actions by state securities/franchise regulators alleging membership agreements constitute franchises requiring registration. 8 new actions filed in 2025 fiscal year for unpaid fees and/or trademark infringement.
Items 10, 11
Training & Operations
- Classroom training
- 84 hrs
- On-the-job training
- 15 hrs
- Training location
- The Property or another location designated by franchisor
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- Site selection
- Member selects; franchisor reviews and approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- AutoClerk Atlas PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AutoClerk Atlas PMS
Item 20 · call current owners
Franchisee Contacts
1,885 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Best Western franchise?
The total investment to open a Best Western franchise ranges from $582K – $2.6M. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Best Western franchise owners earn?
Best Western makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Best Western?
Best Western is franchised by Best Western International, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Best Western FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Best Western FDD and qualifies whose outlets they describe.
What is Best Western's franchise failure rate?
Based on SBA 7(a) loan data, Best Western has a charge-off rate of 8.8% across 418 loans, meaning 8.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Best Western franchise locations are there?
As of their most recent FDD filing, Best Western has 1,750 total units in the United States, including 1,748 franchised units and 2 company-owned units. 32 new units were opened in the latest reporting year.
Is Best Western a good franchise to buy?
FranchiseVerdict rates Best Western as a B-grade franchise with a verdict score of 61 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.