factual

For a Best Western Airport property, what is the primary market radius?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

m the center of the main entrance of the lobby and is of a length determined from the following chart, based on the Qualified Hotel's property type and applicable mid-sized hotel market category.

Property Type Primary Market Secondary Market Tertiary Market
Airport 1 Mile 2 Miles 4 Miles
Intown, 0.25 Miles 1.25 Miles 3 Miles
Downtown,
Urban
Highway 1.5 Miles 3 Miles 5 Miles
Resort 1 Mile 2 Miles 4 Miles
Suburban 1.5 Miles 2.5 Miles 4 Miles

If a Membership is transferred to another designated Property in accordance with Article II, Section 4 of these Bylaws, the Member Market Area will be determined by the property type of the newly designated Property regardless of the Member Market Area of the previous Best Western Property.

The radius of a Member Market Area shall be measured by a global positioning system selected by the Board. Market category criteria will be as determined by Smith Travel Research or such other means as selected by the Board, subject to final approval by the Board. The Board, by an affirmative vote of five Directors, may adjust the Member Market Area radius for each property type and market category based upon an analysis of data from additional impact studies.

Source: Item 23 — Receipts (FDD pages 108–413)

What This Means (2025 FDD)

Based on the 2025 Best Western FDD, the document does not specify a concrete radius for a Best Western Airport property's primary market area. Instead, it outlines the process by which Best Western determines market areas and handles potential conflicts between properties.

The FDD explains that the radius of a Member Market Area is measured using a global positioning system selected by Best Western's Board of Directors. These market category criteria are determined by Smith Travel Research or similar means approved by the Board. The Board has the authority to adjust the Member Market Area radius for each property type and market category, but these adjustments can only occur every five years and require a favorable vote from the Governors Conference.

Furthermore, the FDD indicates that Best Western's Bylaws grant existing members certain rights regarding market area considerations. A new application for a property within an existing member's market area will generally not be accepted unless the existing member provides written consent. When a new property is located near an existing one, Best Western may commission an impact study to assess the potential effect on the existing member's business. This study analyzes the applicant's prospects, market demand, and the incremental impact on existing members, considering potential occupancy and revenue losses.

For a prospective franchisee, this means that the market area for a Best Western Airport property is not a fixed distance but is subject to evaluation and potential adjustment by Best Western. The franchisee should inquire with Best Western about the specific market area considerations for their desired location, including any potential impact studies or existing member rights that may affect their application.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.