What does Best Western consider to be material representations when granting, continuing, or renewing a Best Western membership?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Member certifies that all representations made in connection with its Application, the Approval Letter, and this Agreement are true and constitute material representations for the purpose of inducing Best Western to grant Membership. Member agrees that any misrepresentation shall be grounds for denial of this Application or cancellation of Membership. Member further agrees that any representations made in the future, whether in connection with renewing this Agreement or otherwise, constitute material representations for the purpose of inducing Best Western to grant, continue, or renew Membership, and that any false representation shall be grounds for revocation of a decision regarding the Application or the Approval Letter, or denial of Membership, denial of Membership renewal, or cancellation of Membership.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the company considers all representations made by a member in connection with their application, the Approval Letter, and the Membership Agreement as material for inducing Best Western to grant membership. This means that the information provided by the applicant is crucial to Best Western's decision-making process.
Best Western emphasizes that any misrepresentation can lead to the denial of an application or cancellation of membership. Furthermore, any representations made in the future, whether for renewing the agreement or otherwise, are also considered material. False representations can result in the revocation of decisions regarding the application or Approval Letter, denial of membership, denial of membership renewal, or cancellation of membership.
In practical terms, this means a prospective Best Western franchisee must ensure that all information provided to Best Western is accurate and truthful. This includes the initial application, any subsequent documentation, and any statements made during the membership period. Failure to do so could have serious consequences, including the loss of the franchise. This is a fairly standard clause in franchise agreements, as the franchisor needs to rely on the information provided by the franchisee to make informed decisions.