What are the criteria that define a 'Qualified Hotel' for a Best Western property?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
ly, a personal interest in the approval or denial of such Membership Application.
- (D) The provisions of Article II, Section 2 shall apply to all Best Western Members regardless of sub-brand or product descriptors.
Section 3. Member Market Area Considerations
(A) A Membership Application for a Property located within the Member Market Area of a Qualified Hotel will not be accepted. An exception to this will apply only if the Voting Member responsible for each Affected Qualified Hotel advises the Board in writing that the Member has no objection to approval of the Membership Application.
(B) Definitions
- (1) "Qualified Hotel" means a Best Western Property, which meets all of the following criteria:
- (a) It is not currently and has not been 60 days past due on any of its Membership dues and fees or assessments twice within the last 12 months;
impact on the Member's Property.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a 'Qualified Hotel' is defined as a Best Western property that meets specific criteria related to its financial standing with the company. To be considered a 'Qualified Hotel,' the property must not be currently, nor have been within the last 12 months, more than 60 days past due on any membership dues, fees, or assessments on two or more occasions.
This definition is significant because it impacts a prospective franchisee's ability to open a new Best Western location near an existing one. Best Western will not accept a new membership application for a property located within the 'Member Market Area' of an existing 'Qualified Hotel'. The only exception to this rule is if the Voting Member responsible for each 'Affected Qualified Hotel' advises the Best Western Board in writing that they have no objection to the approval of the new membership application.
This policy protects existing Best Western franchisees who maintain their account standing by preventing the introduction of new competing locations nearby without their consent. For a prospective franchisee, it highlights the importance of maintaining timely payments of all dues and fees to retain the benefits and protections afforded to 'Qualified Hotels' within the Best Western system. It also means that if a franchisee falls out of good standing, they risk losing the market protections that come with being a 'Qualified Hotel'.