What constitutes the beginning of construction for a Best Western applicant?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- 500.8 A. An Applicant granted conditional approval for a Property proposed for construction may apply for extensions of time related to the conditional approval so long as construction has not yet commenced. Extensions may be granted by Best Western in six (6) month increments. The total amount of time that may be allowed to begin construction shall be three (3) years from the date of conditional approval. Each such Applicant seeking an extension shall submit:
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- Any such request at least thirty (30) days prior to the then-expiring period allowed for commencement of construction;
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- A progress report describing, at a minimum, the current status of financing, architectural plans, specifications, satisfaction of zoning requirements, and plans for commencement of construction; and
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- Payment of a non-waivable extension fee, with the extension fee determined by the Board from time to time. The extension fee shall be nonrefundable as of the date that the extension period begins.
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Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
The 2025 Best Western FDD states that an applicant with conditional approval for a new construction property can request extensions, provided that construction has not yet commenced. The document does not define what specific actions constitute the commencement of construction.
Since the FDD does not define 'commencement of construction,' prospective Best Western franchisees should seek clarification from Best Western regarding what specific actions or milestones would be considered the start of construction. This is crucial for understanding the timeline and requirements for requesting extensions to the conditional approval.
Understanding this definition is important because once construction has commenced, the applicant is no longer eligible for extensions to their conditional approval. This could impact the franchisee's ability to manage unforeseen delays or challenges during the construction process, potentially leading to penalties or loss of the affiliation fee.