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What conditions must a Best Western franchisee meet to avoid cancellation of their Membership Agreement?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

A "Qualified Hotel" is a System Hotel that:

  • (1) Is current on all dues, fees and assessments and has not been 60 days past due on any of its dues, fees, or assessments twice within the last 12 months;
  • (2) Its most recent three quality assurance scores, or such lesser number of scores if the Property has not yet received three quality assurance scores, average at least 50 points higher than the passing level as defined in the Regulatory Documents;
  • (3) Is not past due in meeting any conditions or requirements which would constitute grounds for cancelling the Membership Agreement; and
  • (4) Is not a BW Signature Collection® hotel, a BW Premier Collection® hotel or a SureStay Collection by Best Western® hotel.

Source: Item 12 — Territory (FDD pages 77–84)

What This Means (2025 FDD)

I am unable to provide the specific conditions that would constitute grounds for cancellation of the Best Western Membership Agreement, according to the 2025 Franchise Disclosure Document. However, the FDD does state that to be considered a 'Qualified Hotel,' a Best Western System Hotel must not be 'past due in meeting any conditions or requirements which would constitute grounds for cancelling the Membership Agreement.'

To be a 'Qualified Hotel' a Best Western System Hotel must also meet the following criteria: be current on all dues, fees, and assessments, and has not been 60 days past due on any of its dues, fees, or assessments twice within the last 12 months; and its most recent three quality assurance scores, or such lesser number of scores if the Property has not yet received three quality assurance scores, average at least 50 points higher than the passing level as defined in the Regulatory Documents. A BW Signature Collection® hotel, a BW Premier Collection® hotel or a SureStay Collection by Best Western® hotel cannot be a 'Qualified Hotel'.

To fully understand the conditions that could lead to the cancellation of a Best Western Membership Agreement, a prospective franchisee should carefully review Item 17, 'Renewal, Termination, Transfer and Dispute Resolution' of the 2025 FDD and consult with a franchise attorney.

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.