What conditions must be met for Best Western to approve a transfer of membership from the Site to a Designated Property?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN REGULATORY DOCUMENT | SUMMARY |
|---|---|---|
| (calculated as your average Monthly Fees during the previous 12 months (but if Monthly Fees have been owed to us for less than 12 months, the average of all prior months) multiplied by 36); or (y) Monthly Fees for the remainder of the Extended-Length Term or renewal term (calculated as your average Monthly Fees during the previous 12 months multiplied by the number of months remaining in the Extended-Length Term or renewal term); pay us the cost of all goods and services provided by or ordered through us for which payment has not yet been received; and, if the Property continues to operate after resignation, cancellation or termination, pay the full fees, dues, charges, and assessments until the Property closes. | ||
| j. | Not applicable | Not applicable |
| Assignment of | ||
| contract by | ||
| licensor | ||
| k. "Transfer" by Member – defined | Bylaws Article II, Section 4, Section 7(B) and Section 7(C) | Transfer of Membership to a Designated Property (defined in Item 12), and transfer of Membership associated with a sale of the Property. |
| l. Licensor approval of transfer by Member | Bylaws Article II, Section 4, Section 7(B) and Section 7(C) | You may not transfer Membership without our prior approval. |
| m. Conditions for licensor approval of transfer | Bylaws Article II, Section 4 and Section 7 | To transfer Membership from the Site to a Designated Property: (i) ownership must not change more than 50%, (ii) Designated Property must be within the same MMA as the Site, and distance between the Site and the Designated Property cannot exceed a certain designated distance, (iii) Designated Property not in an MMA of any Member nor where any Member has right to request an Impact Analysis, (iv) Designated Property has an MMA consistent with the criteria as described herein or determined by Board, (v) Best Western Identifying Marks associated with the relocated Property are same as or higher, (vi) Designated Property provides improved representation in the same relevant market, (vii) the Property at the Designated Property meets or exceeds standards prior |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 88–92)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, transferring membership from an existing site to a designated property requires meeting several conditions. These conditions relate to ownership, location, brand representation, property standards, and operational considerations. Specifically, the ownership must not change by more than 50%. The designated property must be within the same MMA (Market Management Area) as the original site, and the distance between the two cannot exceed a certain designated distance. The designated property also cannot be in an MMA of any other Best Western member or in an area where another member has the right to request an Impact Analysis.
Furthermore, the designated property's MMA must align with established criteria or those determined by Best Western's Board. The Best Western Identifying Marks associated with the relocated property must be the same or higher than the original site. The designated property must also provide improved representation in the same relevant market. The property at the designated location must meet or exceed the standards of the original site before relocation.
In addition to these criteria, Best Western requires adherence to specific operational and financial conditions. The relocation must involve commencing operations as a Best Western System Hotel, payment of a relocation fee, and a review of the designated property according to established policies and procedures. The request for relocation must be presented to the Board for approval. The original property must remain operating as a Best Western System Hotel in good standing until the relocation is completed, and the transition from the original site to the designated property must be seamless. Finally, the franchisee must consistently adhere to Best Western's policy of always referring guests to the nearest Best Western location.
These conditions ensure that any transfer of membership to a new property maintains Best Western's brand standards, market representation, and operational integrity. A prospective franchisee should carefully review these requirements and ensure their new location meets all criteria before seeking approval for a transfer.