What is the applicant's obligation to commence customary membership services during the contingency period for Best Western?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
D. The Board may act upon other Membership Applications by approving such applications subject to one or more contingencies or conditions imposed by the Board in its sole discretion. If such contingent approval is given, the Applicant shall not be entitled to Membership until the Board has received proof, satisfactory to it, that all such conditions or contingencies have been timely satisfied. Such final approval, if granted, shall be effective from the date the final approval is granted. The Board may direct that customary membership services to the Property may commence during any contingency period, upon the Applicant's agreement to timely comply with the stated conditions and pay the established fees, dues and assessments for said period and the cost of all goods or services provided by or ordered through Best Western whether or not the application is ultimately approved. However, in no event shall this commencement of customary membership services be construed as granting Membership status to the Applicant.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Board may allow customary membership services to begin for an applicant during the contingency period. If this occurs, the applicant must agree to comply with all conditions and pay the established fees, dues, and assessments for the period. They must also cover the cost of all goods or services provided by or ordered through Best Western.
It is important to note that even if customary membership services commence during the contingency period, this does not guarantee full membership status for the applicant. Full membership is only granted upon the Board's final approval after all contingencies have been satisfied.
This arrangement allows Best Western to provide some level of service and support to the applicant during the contingency period, while also ensuring that the applicant is committed to meeting all requirements for full membership. For a prospective franchisee, this means they may start benefiting from some Best Western services and resources early on, but they must fulfill all obligations to secure their membership.