Risk Score
Pending analysis
Investment Range
$577,215 - $32,493,745
Franchise Fee
$26,000
Total US Locations
1,770
Business Summary
Best Western International, Inc. offers memberships and the right to construct new hotels or convert existing ones to operate under various Best Western brand names, including Best Western, Best Western Plus, Best Western Premier, Executive Residency by Best Western, @Home by Best Western, Vīb, GLō, or Aiden. These hotels utilize Best Western's proprietary system and cater to different traveler segments, from midscale to upscale, offering diverse amenities like complimentary breakfast, high-speed internet, and specific room styles. The business operates as a membership association and licensor, providing a brand and system for independent hotel owners.
Corporate History
Best Western International, Inc. was formed as an Arizona nonprofit corporation on December 13, 1957. While its members have operated System Hotels in the United States since approximately 1946 and in Canada since 1964, Best Western International, Inc. itself began granting memberships and offering licenses under its current Franchise Disclosure Document for System Hotels for the first time in March 2019. The company has also licensed its identifying marks for System Hotels outside North America since 1976. Over time, Best Western International, Inc. has introduced and licensed various hotel brands, such as Sadie (from 2018-2024) and Executive Residency by Best Western (from 2019-2023, resuming in 2025). In July 2019, Best Western International, Inc. acquired AutoClerk, Inc., which became the sole approved supplier of property management systems for new System Hotels.
Financial Overview
Investment Range
$577,215 - $32,493,745
Franchise Fee (Low)
$26,000
Franchise Fee (High)
$239,000
Royalty %
5%
Marketing %
2.1%
Equipment Costs (Low)
$137,195
Equipment Costs (High)
$31,496,495
Working Capital
$522,375
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Best Western International, Inc. appears to be in a strong financial position. Its consolidated financial statements have received an unqualified opinion from its independent auditors, indicating that they present the company's financial position fairly. The company has not recognized any investment impairments or material credit risks. The auditors did not identify any conditions or events that would raise substantial doubt about Best Western International, Inc.'s ability to continue as a going concern.
Financing Details
Best Western International, Inc. does not offer direct or indirect financing to franchisees, nor does it guarantee any franchisee's notes, leases, or other obligations. Franchisees are responsible for securing their own financing through external sources. However, in January 2024, a related party, a Limited Liability Company partially owned by a Director, entered into an agreement to provide a Revolving Credit Facility of up to $10 million for multi-unit development opportunities specifically for @Home by Best Western hotels. This facility has a variable interest rate based on the SOFR plus 7.0%, with one-time draws available until November 30, 2028, and the facility expiring on May 31, 2031. No draws had been made on this facility as of November 30, 2024. Best Western International, Inc. maintains that this is a related party transaction and not a general financing offer from the franchisor to all franchisees.
Performance Metrics
Total US Locations
1,770
Franchised Units
1,768
Corporate Units
2
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
14
Litigation Summary
Best Western International, Inc. has a history of litigation, with 14 cases disclosed that were either concluded or initiated within the last three years. This includes three lawsuits filed in 2022 against former members for failing to pay outstanding accounts and fees after termination or self-termination; these cases were later settled. Three additional lawsuits were initiated in 2023 and 2024 to collect unpaid fees and for trademark infringement, and these cases are currently ongoing. Historically, Best Western International, Inc. has also faced and settled several other lawsuits related to unpaid fees, wrongful termination allegations by former members, and disputes regarding conditional approvals. Additionally, administrative actions by state securities divisions in Maryland, Washington, and California alleged violations of franchise registration and disclosure laws, leading to consent orders and penalties, which Best Western International, Inc. addressed without admitting or denying the allegations.
Bankruptcy History
Best Western International, Inc. has no bankruptcy proceedings to report for itself or its key personnel, as stated in the disclosure document.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
Best Western International, Inc. franchisees' Membership Agreement automatically renews for successive 10-year terms. To renew, franchisees must provide written notice of intent not to renew at least 12 months before the current term ends, pay all Annual Dues in full by September 15th of the current Membership year, and remain in compliance with all obligations set forth in the Bylaws, Rules and Regulations, and other Regulatory Documents.
Training & Support Program
Franchisor Assistance
Best Western International, Inc. provides extensive support to its franchisees both before and during operation. Before opening, the franchisor provides copies of its Manuals, reviews and approves hotel designs and plans, and furnishes access to its reservation service. It also specifies approved suppliers for equipment and supplies, and offers required and optional initial training programs for hotel staff. During operation, Best Western International, Inc. uses its efforts to market hotels on its reservation service and loyalty programs, includes them in general advertising, and offers consultation services and advice in areas like operations, facilities, and marketing, some of which may incur fees. The franchisor also administers a quality assurance program through periodic inspections and audits. It provides ongoing training programs and refresher courses, some at no cost, and others for a fee, covering customer service, housekeeping, and front desk services. New hotels also receive on-boarding training, including dedicated revenue management and sales support for a limited period, and assistance from various departments like Brand Development, Worldwide Sales, Education & Training, Marketing, Design, and Public Relations. On-site training or assistance can also be requested for a fee.
Initial Training Hours
99
Training Location
Franchisee's location or another location designated by Best Western International, Inc.
Ongoing Support
Best Western International, Inc. provides ongoing support through several channels. It continuously markets the hotels on its reservation service and loyalty programs and includes them in general advertising. Franchisees maintain access to the reservation service as long as they comply with their obligations. Consultation services and advice on operations, facilities, and marketing are available, with fees for some services. The franchisor conducts a quality assurance program, including periodic inspections and audits at least once every 12 months with 24 hours' notice. Best Western International, Inc. also offers ongoing and refresher training programs for General Managers and other employees, some for a fee (e.g., Tools For Success online training, Voting Representative Brand Orientation, General Manager training, regional service visits, one-day regional training) and some at no cost (online refresher courses). New hotels benefit from on-boarding support including a dedicated certified revenue manager for 12 months and property sales management support for eight months, as well as assistance from various corporate departments. On-site training or assistance can also be requested for a fee.
Franchise Requirements
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Best Western International, Inc. defines territories (Member Market Areas or MMA Areas) using a circular area around the hotel's main entrance, with radii varying by market category and property type. Primary Markets, characterized by more than 80 hotels, 8,000 hotel rooms, or an MSA population over 400,000, have MMA radii from 0.25 miles to 4.5 miles. Secondary Markets, with 50-80 hotels or an MSA population between 100,000-400,000, have radii ranging from 1.25 miles to 25 miles. Tertiary Markets, typically with an MSA population under 100,000, have radii from 3 miles to 25 miles. The Board may adjust these radii based on geographical obstacles or barriers, and specific rules apply to different Best Western brands within these categories, some offering full MMA protection and others limited or no protection against certain other Best Western brands.
Staffing Notes
Best Western International, Inc. requires its franchisees to maintain direct management control over their hotel's business. For most Best Western brands, this responsibility can be met by providing qualified and experienced management, either through an approved management company or by employing a full-time, dedicated, on-premises General Manager. For Aiden System Hotels, franchisees are specifically required to hire an approved management company. The General Manager, sales manager (if applicable), and all front desk, housekeeping, and maintenance personnel are required to complete initial training before the hotel opens. Best Western International, Inc. also mandates ongoing training for General Managers and other employees, and offers specialized on-boarding programs including a dedicated certified revenue manager for 12 months and sales support for 8 months for new hotels.