Can the Best Western Board vote on membership applications at any regular meeting?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
the Applicant's services in the relevant market and the incremental impact on existing Members within the relevant market, and provide such other information as the Board may request it include. For this purpose, incremental impact means the occupancy and revenue losses (expressed as a percentage) projected to result from the operation of the Property covered by a Membership Application as a Best Western Property, less any occupancy and revenue losses projected to result to existing Members in the relevant market from operation of the Property covered by the Membership Application as a non-Best Western Property.
- (b) The Board may consider a Membership Application upon the satisfaction of all impact study requirements.
- (2) The Board shall not approve any Membership Application for Membership unless it has:
- (a) Reviewed and analyzed any requested impact study; and
- (b) Determined that granting the Membership Application for a Property will not materially impair the ability of existing Members to compete with Properties or other hospitality services operated by non-members in the relevant market.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Board of Directors can consider membership applications if all impact study requirements are met. However, the Board cannot approve any membership application unless it has reviewed any requested impact study and determined that granting the membership will not materially impair the ability of existing members to compete with the new property or other hospitality services operated by non-members in the relevant market.
Furthermore, if a membership application is within a member's impact radius, it requires a favorable vote of six directors. The approval or disapproval of an application for Membership rests wholly within the discretion of the Board.
These stipulations ensure that the Board carefully considers the potential effects of new Best Western locations on existing franchisees. A prospective franchisee should be aware of these considerations, as they could influence the approval process of their application. Additionally, a prospective franchisee should inquire about the criteria the Board uses to resolve conflicts or ambiguities in the application of these provisions.