Can customary membership services continue 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 direct that customary membership services begin while the applicant is still satisfying the conditions for full approval.
However, the commencement of these services does not equate to full membership status. The applicant must agree to comply with all stated conditions and pay the necessary fees, dues, and assessments for the period, as well as cover the costs of any goods or services they receive from or order through Best Western. This financial obligation exists regardless of whether the application is ultimately approved.
This arrangement allows potential Best Western franchisees to start integrating with the brand's systems and accessing certain benefits while finalizing their application. However, it's crucial to understand that full membership, with all its associated rights and privileges, is only granted upon the Board's final approval after all contingencies are met. Applicants should carefully review the terms of their contingent approval and ensure they can meet all requirements to avoid potential issues.