Are the 2025 Membership Fees in Exhibit J-3 of the Best Western FDD subject to change?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT J-3 TO FDD
2025 MEMBERSHIP FEES
2025 New Membership Fees
New Membership Fees Effective December 1, 2024 (in U.S. [Dollars
Source: Item 22 — Contracts (FDD pages 107–108)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, Exhibit J-3 outlines the 2025 membership fees. While the document specifies the fees effective as of December 1, 2024, it does not explicitly state whether these fees are subject to change during the 2025 calendar year. However, Best Western's Bylaws, as detailed in Exhibit J-1, grant members the right to vote on increases in member dues, fees, or assessments exceeding the lesser of 5% or the rate of inflation for the previous year.
Therefore, while the initial 2025 membership fees are set, there is a mechanism in place for members to influence potential increases. This implies that fees could change, but only with member input and limitations on the magnitude of the increase. Prospective franchisees should be aware of this potential for fee adjustments and the role they would play in approving such changes.
To gain a clearer understanding of the stability of the 2025 membership fees, it would be prudent for potential Best Western franchisees to inquire directly with the franchisor about the likelihood of fee adjustments during the year and the historical frequency of such changes. Understanding the factors that could trigger a fee increase and the process for member approval will allow prospective franchisees to more accurately forecast their potential costs and assess the financial implications of joining the Best Western system.