Best Western International, Inc.Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Best Western International, Inc. franchise requires a total initial investment of $443K – $6.9M, including a $29K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $443K – $6.9M
- 22nd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 21
- 23rd pct Lodging
- SBA default
- N/A
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
25 legal cases disclosed in the FDD. Read Item 3 before signing.
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.
- Verdict A (Top Quintile) with a risk score of 13/100.
- 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.
- Parent company
- 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 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.
- CEO
- Lawrence M. Cuculic
- Headquarters
- AZ
- Founded
- 1957
- FDD year
- 2026
- States available
- 29
FDD Item 7 · 2026 filing · 28 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Fee (Premier 120-Room)not refundable | $4K | $4K | |
| Affiliation Fee (Premier 120-Room)not refundable | $25K | $25K | |
| Impact Study Fee (Premier 120-Room) | $0 | $4K | |
| Renovation Work (Premier 120-Room)not refundable | $0 | $2.7M | |
| Furniture, Fixtures and Equipment (Premier 120-Room)not refundable | $0 | $3.4M | |
| Inventory and Operating Equipment (Premier 120-Room)not refundable | $72K | $90K | |
| Signage (Premier 120-Room)not refundable | $315 | $525 | |
| Distribution Photography Package Fee (Premier 120-Room)not refundable | $2K | $10K | |
| Computer System (Premier 120-Room)not refundable | $0 | $13K | |
| Insurance (Premier 120-Room)not refundable | $9K | $14K | |
| Organizational Expense (Premier 120-Room)not refundable | $1K | $2K | |
| Permits and Licenses (Premier 120-Room)not refundable | $0 | $63K | |
| Miscellaneous Project Management Expenses (Premier 120-Room)not refundable | $0 | $26K | |
| Additional Funds - 3 months (Premier 120-Room)not refundable | $500K | $545K | |
| Application Fee (Signature 90-Room)not refundable | $4K | $4K | |
| Affiliation Fee (Signature 90-Room)not refundable | $25K | $25K | |
| Impact Study Fee (Signature 90-Room) | $0 | $4K | |
| Renovation Work (Signature 90-Room)not refundable | $0 | $809K | |
| Furniture, Fixtures and Equipment (Signature 90-Room)not refundable | $0 | $1.4M | |
| Inventory and Operating Equipment (Signature 90-Room)not refundable | $47K | $79K | |
| Total initial investment | $1.1M | $9.7M |
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
- $443K – $6.9M
- Better than avg vs category
- Liquid capital req'd
- $357K – $545K
- Better than avg vs category
- Franchise fee
- $29K – $29K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Technology fee | $130 |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Inventory (initial) | $47K – $90K |
| Total fee load | 5.0% 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 International, Inc. Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 21
- Opened
- 3
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 14.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +17.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 21
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 14.3%
- Franchisor-initiated terminations
- Ceased ops
- 4.8%
- Units that stopped operating
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 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
- 978
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
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 13 / 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
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Protected territory | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| 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
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- POS system
- AutoClerk
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AutoClerk
Item 20 · call current owners
Franchisee Contacts
77 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Best Western International, Inc. · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Best Western International, Inc. franchise?
The total investment to open a Best Western International, Inc. franchise ranges from $443K – $6.9M, with an initial franchise fee of $29K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Best Western International, Inc. franchise owners earn?
Best Western International, Inc. 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 International, Inc.'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Best Western International, Inc. (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Best Western International, Inc. franchise locations are there?
As of their most recent FDD filing, Best Western International, Inc. has 21 total units in the United States, including 57 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Best Western International, Inc. a good franchise to buy?
FranchiseVerdict rates Best Western International, Inc. as a A-grade franchise with a risk score of 13 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.