Can the Best Western Board waive the fees associated with a membership transfer?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
ns of Membership, which, if past due, would constitute grounds for cancellation of Membership; and (e) the transferor is current with respect to all dues, fees and assessments, then in such instance, all requirements, including completion time frames, then applicable to the transferor shall be transferred to and assumed by the transferee without alteration. The Member shall give the Corporation at least 30 days advance written notice of the intended change in ownership. The Board may waive the notice requirement if it determines that the circumstances of the transfer do not or did not permit giving 30 days advance notice to the Corporation.
Where a change in ownership occurs, the transferee's rights and obligations as a Member shall be effective as of the date of the change in equitable ownership or lessee interest provided each of the requirements set forth above was satisfied, and the transferee completes and signs all forms then required by the Corporation and pays all transfer fees within 20 days following the change or such more liberal schedule as may be set by the Board.
If the transferee's Voting Member of a Property does not have relevant hotel management experience, the Property shall have a General Manager or Assistant General Manager with at least three (3) years' experience as a General Manager or Assistant General Manager, or a management company for the first year after transfer.
(D) Unless already paid by the transferee, the transferor shall be liable for all sums due to the Corporation, including dues and charges, occurring after a transfer, until 30 days after the member services department of the Corporation is notified in writing by traceable, expedited courier, of the transfer. This provision shall not apply to liability associated with Membership transfers occurring prior to the expiration of an Extended-LengthTerm.
(E) In the event that an ambiguity exists in the application of the provisions of this section, the Board shall have the right to resolve the ambiguity in its sole and exclusive discretion.
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 has some discretion regarding fees related to membership transfers. Specifically, in the event of a change in ownership, the Board can set more liberal schedules for the transferee to complete required forms and pay transfer fees. This implies the Board can adjust the timeframe for compliance, which could indirectly affect the immediate financial burden on the new member.
Additionally, in specific transactions that are exempt from limitations on membership transfer, the transferee must pay any unpaid dues, fees, assessments, rentals, and charges owed by the transferor, unless the transferor pays them. However, the Board has the authority to set more liberal schedules for the transferee to meet Best Western's standards, policies, and requirements. The Board can also establish reasonable fees to cover the corporation's costs for the membership transfer.
Furthermore, the FDD states that the Board can waive the 30-day advance written notice requirement for a change in ownership if the circumstances did not permit giving such notice. While this doesn't directly address fee waivers, it demonstrates the Board's flexibility in certain transfer-related procedures. However, the document also states that Entrance Fees cannot be waived, with the exception of offering and acceptance of a Development Incentive. This suggests a distinction between initial entrance fees and fees associated with membership transfers.
In summary, while the Best Western Board has some latitude in adjusting schedules and requirements related to membership transfers, the FDD does not explicitly state that the Board can directly waive transfer fees, except potentially through a Development Incentive. A prospective franchisee should seek clarification from Best Western regarding the specific conditions under which transfer fees can be waived or adjusted.