factual

Can the Best Western Board impose more than one contingency or condition on a membership application?

Best_Western Franchise · 2025 FDD

Answer 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 Best Western Board of Directors has the authority to approve membership applications with multiple contingencies or conditions. This means that when you apply for a Best Western franchise, the Board can impose more than one requirement that you must meet before your application is fully approved and you are granted membership.

This contingent approval means that while you may not yet be a full member, the Board may allow you to commence customary membership services during the contingency period. However, this commencement of services does not equate to full membership status. You are obligated to comply with the conditions set by the Board and pay the necessary fees, dues, and assessments for the services you receive during this period, regardless of whether your application is ultimately approved.

For a prospective Best Western franchisee, this implies that you need to be prepared to meet potentially multiple conditions set by the Board. These conditions must be satisfied before you can attain full membership. It is crucial to understand these conditions and their associated costs, as well as the fees for services provided during the contingency period, as these are payable even if your application is eventually denied. Therefore, careful assessment of your ability to meet these contingencies is essential before proceeding with the 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.