Best Western vs Econo Lodge
Best Western vs Econo Lodge: Best Western costs $510K–$2.8M to open; Econo Lodge costs $470K–$2.8M. Best Western has 702 units, Econo Lodge has 606. SBA loan history: Best Western = 882 loans (9.0% default); Econo Lodge = 794 loans (7.1% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet, see the comparison below.
Best Western vs Econo Lodge: Capital, Scale & Lending Analysis
Data-driven differentiation pulled from FDD filings and SBA 7(a) loan-level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Econo Lodge requires the lower minimum capital commitment ($470K vs $510K for Best Western), a 9% spread. Initial franchise fees come in at $50K for Best Western versus $25K for Econo Lodge, Econo Lodge has the lower entry fee.
System Scale & Tenure
On scale, Best Western operates 702 units to Econo Lodge's 606. Best Western has been operating 80 years (founded 1946) versus 57 for Econo Lodge (founded 1969), a 23-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Best Western has the deeper SBA lending track record with 882 historical 7(a) approvals versus 794 for Econo Lodge. Best Western's peak SBA year was 2016 (53 loans); Econo Lodge's peak was 2021 (44 loans). Econo Lodge's more recent peak generally indicates fresher lender appetite. Geographically, Best Western concentrates in TX (161 SBA-funded units) while Econo Lodge leads in CA (54). Pick the brand whose strongest state matches yours for warmest lender introductions. Average SBA loan size on funded Best Western deals is $1.4M vs $1.2M for Econo Lodge, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 9.0% for Best Western and 7.1% for Econo Lodge, Econo Lodge has the cleaner historical loss profile by 1.9 points. PeerSense FPI scores come in at 41 (Fair) for Best Western and 68 (Strong) for Econo Lodge, giving Econo Lodge the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 41/100 | 68/100 |
Health Tier | Fair | Strong |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 882 | 794 |
SBA Volume | – | – |
Default Rate | 9.0% | 7.1% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $510K – $2.8M | $470K – $2.8M |
Franchise Fee | $50K | $25K |
Royalty Rate | N/A | 6% |
Ad Fund | N/A | 7.9% |
Liquid Capital | N/A | $2.0M |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 702 | 606 |
Franchised Units | 702 | 606 |
Company-Owned | – | – |
Term Length | N/A | N/A |
Brand Information
Year Founded | 1946 | 1969 |
Franchising Since | 1960 | 1960 |
Years Franchising | 66 yrs | 66 yrs |
Headquarters | Phoenix, AZ | Rockville, MD |
Category | Hotels | Hotels |
Website | ||
FDD Year | 2021 | 2023 |
Which Is Better, Best Western or Econo Lodge?
Lower upfront capital required
Econo Lodge
Best Western: $510K starting · Econo Lodge: $470K starting
More SBA lender confidence
Best Western
Best Western: 882 SBA loans · Econo Lodge: 794 SBA loans
Lower historical default rate
Econo Lodge
Best Western: 9.0% · Econo Lodge: 7.1%
Larger system & brand presence
Best Western
Best Western: 702 units · Econo Lodge: 606 units
More lender financing options
Best Western
Best Western: 275 unique lenders · Econo Lodge: 246 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Best Western vs Econo Lodge: Franchise Funding Comparison
Comparing Best Western and Econo Lodge is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $470K to $2.8M.
Both brands have active SBA lending histories, Best Western with 882 SBA loans and Econo Lodge with 794. This means proven lender acceptance and established underwriting paths for franchise buyers.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Best Western vs Econo Lodge, Frequently Asked Questions
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