Does continuation of customary membership services grant membership status to the Best Western applicant during the contingency period?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
D. The Board may act upon other Membership Applications by approving such applications subject to one or more contingencies or conditions imposed by the Board in its sole discretion. If such contingent approval is given, the Applicant shall not be entitled to Membership until the Board has received proof, satisfactory to it, that all such conditions or contingencies have been timely satisfied. Such final approval, if granted, shall be effective from the date the final approval is granted. The Board may direct that customary membership services to the Property may commence during any contingency period, upon the Applicant's agreement to timely comply with the stated conditions and pay the established fees, dues and assessments for said period and the cost of all goods or services provided by or ordered through Best Western whether or not the application is ultimately approved. However, in no event shall this commencement of customary membership services be construed as granting Membership status to the Applicant.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, even if an applicant is allowed to commence customary membership services during a contingency period, this does not grant them full membership status. The Board of Directors may approve an application subject to certain conditions, and the applicant only becomes a member once they have provided satisfactory proof that all conditions have been met. Final approval is effective from the date it is granted by the Board.
During the contingency period, Best Western may direct that customary membership services to the property begin, but only if the applicant agrees to comply with the stated conditions, pay the established fees, dues, and assessments for the period, and cover the costs of all goods or services provided by or ordered through Best Western. This financial obligation exists regardless of whether the application is ultimately approved.
This distinction is important for prospective franchisees because it clarifies that they are not considered full members and may not have all the rights and privileges of a member until all contingencies are resolved and final approval is granted. Despite paying fees and receiving some services, the applicant's membership is still conditional and subject to the Board's final decision.