What acknowledgement is required from Best Western Members who request the annual budget?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
At least 30 days prior to the beginning of each fiscal year, the Board shall have approved a final, detailed annual budget showing proposed receipts and expenditures for the upcoming fiscal year. The annual budget shall be distributed to all Members who make written request therefore, and who acknowledge, on a form prescribed by the Corporation, that, except as may be required by law, the Member will maintain and protect the confidential nature of the documents provided, except that it may be disclosed to Voting Members. Members receiving the annual budget shall reimburse the Corporation for reasonable photocopy charges (which shall not include employee or overhead expenses of the Corporation).
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a Best Western Member who requests the annual budget must acknowledge, on a form prescribed by the corporation, that they will maintain and protect the confidential nature of the documents provided, except as may be required by law, and that it may be disclosed to Voting Members.
This acknowledgement ensures that sensitive financial information is not disclosed to unauthorized parties, protecting Best Western's financial interests. This is a fairly standard practice in franchising, as franchisors often share detailed financial information with franchisees to promote transparency and trust. However, they also need to ensure that this information is not misused or leaked to competitors.
Additionally, Members receiving the annual budget must reimburse Best Western for reasonable photocopy charges, which do not include employee or overhead expenses of the corporation. This cost recovery measure ensures that the administrative expenses associated with providing the budget are covered by the Members who request it, rather than being absorbed by the entire membership. Prospective franchisees should factor in these potential photocopy charges when considering whether to request the annual budget.