Best Western International, Inc.
Bottom line
- Total investment $443K – $6.9M including a $29K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 978 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Best Western International, Inc. unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
Overview
About
Franchisees own and operate Best Western-branded hotel properties, managing daily operations including front desk, housekeeping, maintenance, and guest services. Franchisees pay a 5% royalty on gross rooms revenue to the franchisor in exchange for brand affiliation, reservation system access, loyalty program participation, and standardized operating procedures across the 46-unit system.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Best Western presents a caution-level risk profile: stagnant growth, significant litigation exposure, opaque financial performance, and structural terms that prioritize franchisor revenue over franchisee profitability.
Score breakdown · what drove the 49 / 100 rating
- 01MINORMinimal unit growth (4.7% YoY) suggests stagnant or contracting system momentum in competitive hotel franchise market
- 02MINOR25 active legal actions with 8 pending fee collection lawsuits indicate enforcement challenges and potential franchisor-franchisee relationship deterioration
- 03MINORNo Item 19 financial disclosures (Avg Revenue/Net Income) prevents validation of profitability claims—critical gap for $442K-$6.9M investment
- 04MINORUnprotected territory creates direct competition risk within system and limits competitive defensibility at property level
- 05MINOR5% royalty on gross rooms revenue (not net) means fees apply regardless of profitability, pressuring unit-level economics during downturns
- 06HIGHMember termination disputes in litigation portfolio suggest aggressive enforcement or unclear franchise agreement terms
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
77 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Best Western International, Inc. · FDD (2026) PDF