Who conducts the Impact Analysis for a Best Western franchise, and what are the requirements for that firm?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
The Impact Analysis will be conducted by an independent nationally recognized consulting firm familiar with and knowledgeable about the hospitality business, which shall not be affiliated with, in any respect, us or any of our Members. The Impact Analysis will analyze the applicant's prospect for success, the demand for the applicant's services in the relevant market and the incremental impact on existing Members within the relevant market, and provide such other information as we may request it include. For this purpose, incremental impact means the occupancy and revenue losses (expressed as a percentage) projected to result from the operation of the applicant's proposed System Hotel, less any occupancy and revenue losses projected to result to existing System Hotels in the relevant market from operation of the property covered by the application as a non- System Hotel.
Source: Item 12 — Territory (FDD pages 77–84)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Impact Analysis, when requested by a Best Western franchisee, is conducted by an independent nationally recognized consulting firm. This firm must be familiar with and knowledgeable about the hospitality business.
Crucially, the consulting firm must not be affiliated with Best Western or any of its members in any respect. This requirement ensures impartiality in the analysis. The Impact Analysis itself will assess the applicant's potential for success, the demand for their services within the relevant market, and the incremental impact on existing Best Western members within that market. Incremental impact is defined as the projected occupancy and revenue losses (expressed as a percentage) resulting from the new System Hotel, minus any losses projected from the property operating as a non-System Hotel.
Best Western will consider the application upon completion of the Impact Analysis. The application can only be approved if Best Western has reviewed the analysis and determined that granting the application will not materially impair the ability of existing members to compete with non-member properties or other hospitality services in the relevant market. This process aims to balance the growth of the Best Western brand with the protection of its existing franchisees' interests.