According to Best Western, what could be grounds for denial of membership?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Payment of any fee or submission of this Application does not give any Applicant any right to affiliation with Best Western.
The Board may deny an Application for any or for no reason.
Member certifies that all representations made in connection with its Application, the Approval Letter, and this Agreement are true and constitute material representations for the purpose of inducing Best Western to grant Membership. Member agrees that any misrepresentation shall be grounds for denial of this Application or cancellation of Membership.
(2) The Board shall not approve any Membership Application for Membership unless it has:
- (b) Determined that granting the Membership Application for a Property will not materially impair the ability of existing Members to compete with Properties or other hospitality services operated by non-members in the relevant market.
Membership shall be subject to cancellation or termination in accordance with Best Western's Regulatory Documents when the continuation of this Membership would be contrary to the interests of Best Western, its affiliates, subsidiaries or Members, or the public image, goodwill or reputation of any such entity or the "Best Western" name and Best Western Identifying Marks. Such reasons include, by way of example only, conduct of an owner, lessee, Voting Member, or management staff that includes offensive, inappropriate, or discriminatory acts or speech.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Board of Directors has broad discretion in approving or denying membership applications. Best Western states that the Board may deny an application for any reason or for no reason at all. This gives Best Western significant latitude in selecting its franchisees.
Additionally, Best Western may deny an application if any representations made by the applicant in connection with their application, the Approval Letter, or the Membership Agreement are found to be untrue. These representations are considered material inducements for Best Western to grant membership. This underscores the importance of accuracy and honesty in all dealings with Best Western during the application process and throughout the membership term.
Furthermore, Best Western can deny membership if granting the application would materially impair the ability of existing members to compete in the relevant market. This consideration reflects Best Western's commitment to protecting its current franchisees from over-saturation and internal competition. Conduct by an owner, lessee, voting member, or management staff that includes offensive, inappropriate, or discriminatory acts or speech can also be grounds for membership denial, as it could be contrary to the interests of Best Western or damage its public image.