Does the Best Western Board have sole discretion in approving membership applications with contingencies?
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 Best Western Board of Directors does indeed have sole discretion when approving membership applications that are subject to certain conditions. The Board can approve an application but make the final approval contingent upon the applicant satisfying specific requirements. The applicant isn't officially a member until they provide proof, satisfactory to the Board, that all these conditions have been met in a timely manner. The effective date of the final approval is the date it's actually granted.
Best Western may allow the property to start receiving customary membership services during this contingency period. However, this doesn't mean the applicant is considered a member. The applicant must agree to comply with all stated conditions and pay all applicable fees, dues, and assessments for the period, as well as cover the costs of any goods or services they receive through Best Western, regardless of whether their application is ultimately approved.
This conditional approval process allows Best Western to ensure that new members meet certain standards before fully integrating them into the brand. For a potential franchisee, this means they might need to invest time and resources to meet these conditions, such as property improvements, before they can officially operate as a Best Western. It's crucial for applicants to understand these conditions and the associated costs to avoid potential financial burdens if the application isn't fully approved.