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Description
Investment Icon

What is the Initial Investment for a Best Western Franchise?

To open a Best Western franchise, you should be prepared for a significant initial investment, which ranges from $1,606,365 to $30,842,295. This includes a franchise fee of $55,000. Additionally, you will need to have cash readily available, with requirements between $566,165 and $2,448,645, as well as a net worth of $500,000 to $1,000,000. Understanding these financial commitments is crucial for potential franchisees as they plan for their investment.

Fees Icon

What are the Ongoing Fees for a Best Western Franchise?

Owning a Best Western franchise comes with ongoing fees that you'll need to factor into your financial planning. The royalty fee is 5.50% of your revenue, while a marketing fee of 2.10% is also required. These fees are essential for maintaining brand standards and supporting marketing initiatives, helping to drive business to your franchise location.

Revenue Icon

What is the Revenue Potential for a Best Western Franchise?

The revenue potential for a Best Western franchise can be substantial. On average, each unit generates annual revenue of approximately $536,596, with some units achieving revenue as high as $1,000,000. However, it's important to note that the lowest annual revenue reported can be around $25,000. Understanding these figures can help you set realistic expectations and financial goals as a franchisee.

Breakeven Icon

What is the Breakeven Time for a Best Western Franchise?

Franchisees can expect to reach breakeven within approximately 24 months of operation. Additionally, the investment payback period is around 36 months. These timeframes are important for prospective franchisees to consider, as they provide insights into the financial viability and return on investment for the Best Western franchise model.

Best Western Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

36 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$55,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5.50%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2.10%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

24 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$1,606,365 - $30,842,295
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$566,165 - $2,448,645
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$31,568
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$89,319
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,000,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$25,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Travel Franchises
Category icon A more specific division within the broader industry.

i Category:

Travel Agencies
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Ron Pohl
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

6201 N. 24th Parkway, Phoenix, Arizona 85016
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2018
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

BWI Licensing, Inc.

Best Western Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

1857
The number of locations owned by independent franchisees.

Franchised Units i

1855
The number of locations owned and run by the franchisor.

Corporate Units i

2
Units 2021 2022 2023
Total Units 1857 1878 1855
Net Change YoY 21 -23
Franchised Units 1857 1878 1855
Net Change YoY 21 -23
Corporate Units 0 2 2
Net Change YoY 2 0
Investment About

Initial Investment

The Best Western franchise requires a significant initial investment, ranging from $1,606,365 to $30,842,295. This investment covers various costs, including real estate, construction, and equipment. It's essential for prospective franchisees to assess their financial readiness before committing to this opportunity.

Potential About

Franchise Fees

To become a Best Western franchisee, an initial franchise fee of $55,000 is required. In addition to this, franchisees are obligated to pay a royalty fee of 5.50% of their gross sales and a marketing fee of 2.10%. These fees contribute to the brand's marketing efforts and ongoing support provided to franchisees.

Metrics About

Financial Requirements

Franchisees must meet specific financial criteria to qualify for a Best Western franchise. A minimum cash requirement of $566,165 to $2,448,645 is necessary, along with a net worth of $500,000 to $1,000,000. These figures ensure that franchisees have the financial stability to support their business.

Fees About

Revenue Potential

The average annual revenue per Best Western unit is approximately $536,596, with a median of $89,319. Units can generate revenues ranging from $25,000 to as high as $1,000,000, indicating a diverse potential for profitability depending on location and management.

Breakeven About

Breakeven and Payback

Best Western franchisees can expect a breakeven period of around 24 months. The investment payback period is approximately 36 months, allowing franchisees to recover their initial investment relatively quickly, provided they manage their operations effectively.

Units About

Franchise Growth

As of 2023, Best Western operates 1,855 franchised units, showing a slight decrease from 2022. The brand has maintained a stable presence in the market with a combination of franchised and corporate units, indicating a commitment to growth and support for franchisees across various regions.

Frequently Asked Questions

The initial investment for a Best Western franchise ranges from approximately $1,606,365 to $30,842,295, depending on various factors such as location and property type.