What criteria must a Best Western Property meet to be considered a "Qualified Hotel"?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
(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. The Board will consult with the Governors or the appropriate Member Advisory Committees before adopting the policy. This provision shall not affect the Member's right to request an impact analysis in accordance with Article II, Section 2(C) of these Bylaws.
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. Specifically, 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 of its membership dues, fees, or assessments, and this cannot have occurred twice within that 12-month period.
This definition is important because it affects the market area considerations for new membership applications. Best Western will not accept a membership application for a property located within the Member Market Area of a Qualified Hotel. The only exception to this rule is if the Voting Member responsible for each Affected Qualified Hotel advises the Board in writing that they have no objection to the approval of the Membership Application.
For a prospective franchisee, this means that maintaining good financial standing with Best Western is crucial not only for remaining in good standing but also for protecting their market area from potential competition from new Best Western properties. Failing to meet the criteria of a Qualified Hotel could open the door for new Best Western locations to be established nearby, potentially impacting the existing franchisee's business.