Best Western Franchise Cost, Revenue & Review 2026
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 – $32.5M, including a $49K – $245K 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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $582K – $32.5M
- 22nd pct Lodging
- Avg gross sales
- N/A
- 1st pct Lodging
- Royalty
- 3.5%
- 1st pct Lodging
- Units
- 1,750
- 58th 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 avg · 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
- Total investment $582K – $32.5M including a $49K franchise fee, 3.5% ongoing royalty.
- 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).
- Verdict A (Strongest tier), 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).
- 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
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 62% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown22 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
- Top 40% of category vs category
- Liquid capital req'd
- $270K – $387K
- Top 40% of category vs category
- Franchise fee
- $49K – $245K
- Top 40% of category vs category
- Royalty
- 3.5%
- tiered · 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 | 3.5% of gross sales |
| Training fee | $3K |
| Inventory (initial) | $105K – $242K |
| Total fee load | 5.1% of rev |
Financial Performance
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).
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 average of 10.3%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Best Western Compares
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
- 2
- 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
3-year detail · Item 20
- Opened (3yr)
- 95
- Closed (3yr)
- 17
- Terminated (3yr)
- 42
- Non-renewed (3yr)
- 143
- Transfers (3yr)
- 245
- 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
- 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.
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.
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)
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.
Largest disclosed settlement: $250,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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
- 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
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 |
| 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
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 $49K. 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 1,750 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 A-grade franchise with a verdict score of 61 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Best Western, you can request corrections or provide updated information.
Other Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.