What are the conditions for transferring a Best Western 'Extended-Length Member's' membership, and what liabilities remain?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Membership is transferred during the Term pursuant to Article II, Section 7 (B) or (C) of Best Western's Bylaws, the remainder of the Term will transfer with the transfer of the Membership.
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.
(C) The transactions described below in this Article II, Section 7(C) are exempt from all provisions of these Bylaws which would otherwise limit transfer of Membership:
Any change in ownership where at the time of change (a) the Member has had a passing Property assessment score for the past two regular assessments, or such greater score as approved by the vote of all Members pursuant to Article III of these Bylaws; (b) the Member has provided the Corporation with documentation satisfactory to the Corporation that, prior to the change in ownership, the Member provided the transferee copies of the then current design report and the last three Property assessment reports for the Best Western Property (or the last two if there have only been two assessments), and the transferee certified in writing that such reports were received; (c) the Best Western Property is in compliance with the current design program pursuant to Rule 500.21 of the Rules and Regulations; (d) the Member, who may be a Member with Conditions, is not past due in meeting any conditions 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.
- (B) The transactions listed below in this Article II, Section 7(B) are exempt from all provisions of these Bylaws which would otherwise limit transfer of Membership if all the conditions of this Section 7(B) are met. The transferee, within 30 days following the effective date of the change in equitable ownership or lessee interest, must complete and sign all forms then required by the Corporation, and pay to the Corporation all unpaid dues, fees, assessments, rentals and charges owed to the Corporation by the transferor which are not then paid by the transferor; and within such 30 days, or under such more liberal schedules as may be set by the Board, bring the Property to a condition which meets all Best Western standards, policies and requirements which would have been applicable to the transferor. The Board may establish reasonable fees to cover the Corporation's reasonable costs of a transfer of Membership.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to the 2025 Best Western FDD, if a Best Western 'Extended-Length Member's' membership is transferred during the term of the agreement, the remainder of the term will transfer with the membership. Certain transactions are exempt from limitations on membership transfer if specific conditions are met. These conditions include the member having a passing property assessment score for the past two regular assessments, providing the transferee with copies of the current design report and the last three property assessment reports, and the Best Western property being in compliance with the current design program. Additionally, the member must not be past due in meeting any conditions of membership and must be current with respect to all dues, fees, and assessments. The member must also give the corporation at least 30 days advance written notice of the intended change in ownership, although this notice requirement may be waived by the Board.
There are also conditions related to the transferee. Within 30 days of the change in ownership, the transferee must complete and sign all required forms and pay any unpaid dues, fees, assessments, rentals, and charges owed by the transferor that the transferor has not paid. The transferee must also bring the property to a condition that meets all Best Western standards, policies, and requirements applicable to the transferor within the same 30-day period, or under a more liberal schedule set by the Board. The Board may also establish reasonable fees to cover the corporation's costs of the membership transfer.
Regarding liabilities, the transferor remains liable for all sums due to the corporation, including dues and charges, occurring after a transfer, until 30 days after the member services department is notified in writing of the transfer by traceable, expedited courier. However, this provision does not apply to liability associated with membership transfers occurring prior to the expiration of an Extended-Length Term. If the transferee lacks relevant hotel management experience, the property must have a General Manager or Assistant General Manager with at least three years of experience, or a management company, for the first year after the transfer.