Best WesternFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Best Western franchise requires a total initial investment of $582K – $32.5M, including a $45K franchise fee and an ongoing 3.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 8.8% charge-off rate across 418 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $582K – $32.5M
- 23rd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 3.5%
- 1st pct Lodging
- Units
- 1,748
- 53rd pct Lodging
- SBA default
- 8.8%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 1801 to 1748 over 3 years. Investigate why operators are leaving.
25 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $582K – $32.5M including a $45K franchise fee, 3.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 90/100. 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, 2010–2024).
- 25 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
- Legal entity
- Best Western International, Inc.
- Incorporated in
- AZ
- HQ
- 6201 N. 24th Parkway, Phoenix, AZ 85016
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $520.9M
- vs $547.5M prior year
Overview
About
Franchisees operate independently-owned hotels under the Best Western brand, managing daily lodging operations including reservations, housekeeping, maintenance, and guest services. They participate in the Best Western membership system, gaining access to the franchisor's central reservation system, marketing support, and loyalty program while paying ongoing royalties based on room revenue.
- CEO
- Lawrence M. Cuculic
- Headquarters
- AZ
- Founded
- 1957
- FDD year
- 2026
- States available
- 50
FDD Item 7 · 2026 filing · 22 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 | |
| Construction Work | $4.8M | $10.5M | |
| Furniture, Fixtures and Equipment | $693K | $1.2M | |
| Inventory and Operating Equipment | $105K | $242K | |
| Signage | $21K | $47K | |
| Computer System | $117K | $119K | |
| Insurance | $8K | $13K | |
| Organizational Expense | $1K | $2K | |
| Permits and Licenses | $26K | $89K | |
| Initial Training Fees | $3K | $6K | |
| Miscellaneous Preopening and Project Management Expenses | $0 | $79K | |
| Green Key Global Certification | $675 | $675 | |
| Additional Funds (3 months) | $270K | $292K | |
| Renovation Work | $0 | $677K | |
| Furniture, Fixtures and Equipment (Conversion) | $0 | $935K | |
| Permits and Licenses (Conversion) | $0 | $32K | |
| Total initial investment | $6.5M | $14.7M |
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 – $32.5M
- Better than avg vs category
- Liquid capital req'd
- $270K – $545K
- Better than avg vs category
- Franchise fee
- $45K – $235K
- Better than avg vs category
- Royalty
- 3.5%
- percentage · typical 6–8%
- Ad fund
- 1.6%
- typical 3–5%
- Total fee load
- 5.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.5% of gross sales |
| Marketing / ad fund | 1.6% of gross sales |
| Inventory (initial) | $105K – $242K |
| Total fee load | 5.1% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Best Western Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,748
- Opened
- 32
- Last reporting year
- Closed
- 52
- Turnover rate
- 3.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -1.1%
- Net unit change last year
- 3-yr CAGR
- -2.9%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 9
- Terminated (3yr)
- 5
- Non-renewed (3yr)
- 50
- Transfers (3yr)
- 72
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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.
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%
- 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
Vintage analysis
Best Western charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Best Western's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 27-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
2 case reference(s): 0 pending, 6 settled.
Largest disclosed settlement: $15
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 90 / 100 rating
- 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
- 04MEDWide investment range ($581K-$32.5M) with no disclosed average revenue or net income makes ROI analysis impossible and suggests inconsistent unit performance
- 05MINORRoyalty structure tied to 'Property Room Revenue' is non-standard and unclear, creating potential disputes over revenue calculation and fee obligations
- 06HIGHHigh 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 25 |
View Item 3 litigation summary
2 case reference(s): 0 pending, 6 settled.
Items 10, 11
Training & Operations
- Classroom training
- 84 hrs
- On-the-job training
- 15 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- POS system
- AutoClerk Atlas PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AutoClerk Atlas PMS
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Best Western · FDD (2026) PDF
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 – $32.5M, with an initial franchise fee of $45K. 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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 1,748 total units in the United States, including 1,801 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 F-grade franchise with a risk score of 90 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.