What conditions must be met for a Best Western member to relocate and commence operations as a System Hotel?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
l to 15% of the average of the Property's room rates per room per day multiplied by the total number of rooms; pay us the lesser of: (x) 36 months of Monthly Fees |
| 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. |
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, a Best Western member looking to transfer their membership from their current site to a designated property must meet several conditions. First, the ownership of the property cannot change by more than 50%. Second, 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.
Additionally, the designated property cannot be in an MMA of any other Best Western member, nor in an area where another member has the right to request an Impact Analysis. The designated property must also have an MMA consistent with the criteria described in the FDD or as 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.
Furthermore, the designated property must provide improved representation in the same relevant market. To complete the relocation and commence operations as a System Hotel, the member must pay a relocation fee. The designated property will be reviewed according to established policies and procedures, and the request will be presented to the Board. 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 member must consistently adhere to Best Western's policy of always referring guests to the nearest Best Western location.