Last October, we spent three nights in the little town of Pfronten. Well, Pfronten is actually a collection of 13, I think, villages (Reid, Steinach, Weißbach, et al) that have grown together and now go collectively by the name Pfronten. Pfronten is on the Außerfernbahn, the rail line owned by German Rai, that goes from Kempten, Germany, through the Tirol to Garmisch-Partenkirchen. It's just over the border from Austria, a few km from Reutte. It's just over the border on the Kempten side. Although Pfronten is a popular vacation destination for Germans, it is off the Lonely Planet tour route.
The Ried Bahnhof in Pfronten is about ½ hr by bus from the Füssen Bahnhof; you get a pass for the bus with your room.
We stayed here, at Gastof Aggenstein. It was my third time in Pfronten and my second time at Aggenstein. It's a comfortable "hotel" with a big restaurant (the major part of their business, I think). I came back; I think that's recommendation enough.