Can customary membership services commence during the contingency period for Best Western applicants?
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, customary membership services may commence during the contingency period for applicants. The Best Western Board of Directors may conditionally approve membership applications, and during this contingency period, customary membership services can be initiated. However, this commencement of services does not automatically grant the applicant full membership status. Final approval is contingent upon the applicant satisfying all conditions set by the Board.
To begin customary membership services during the contingency period, the applicant must agree to comply with all stated conditions and pay the required fees, dues, and assessments for the period. They must also cover the costs of any goods or services provided by or ordered through Best Western, regardless of whether the application is ultimately approved. This ensures that Best Western is compensated for any services rendered during the evaluation phase, even if the applicant does not become a full member.
This conditional arrangement allows prospective Best Western franchisees to start integrating with the brand and accessing certain services while they finalize their application requirements. However, applicants should be aware that they are responsible for all associated costs during this period and that full membership is not guaranteed until all contingencies are met and formally approved by the Board. Applicants should carefully review the terms of approval and understand all financial obligations before agreeing to commence services during the contingency period.