How does the definition of 'Member' in Item 1 relate to the financial obligations outlined in Items 5, 6, and 7 for Best Western?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
document entitled "Rules and Regulations," which document may only be adopted, amended or repealed by the Members pursuant to Article III, Section 5 of these Bylaws.
"Transfer Application" means the form established by the Board from time to time to be used in connection with a request to transfer a Membership to another designated Property pursuant to Article II, Section 4 of these Bylaws.
"Vice-Chairperson" has the meaning set forth in Article V, Section 3 of these Bylaws.
"Voting Member" means a Member who meets the requirements of Article III, Section 4 of these Bylaws.
Article II
Membership
Section 1. Qualifications
(A) Membership is restricted to natural persons who either own a Property or Properties, are partners in a partnership owning or operating a Property or Properties, are lessees operating a Property or Properties, are officers of corporations owning and/or operating a Property or Properties or are managers designated by the owner or owners of a Property or Properties.
(B) A Membership shall apply to a single Best Western Property. Only one Membership shall be issued with respect to a Property.
(C) Any person may hold multiple Memberships, each such Membership associated with a separate Best Western Property, provided the person has an interest in each such Best Western Property as set forth in Article II, Section 1(A) of these Bylaws.
(D) Membership is further restricted to those persons whose Properties meet the standards established in the Regulatory Documents and the established customs and practices of the Corporation.
(E) (1) An authorized representative of a Condominium Property may qualify for Membership, subject to meeting such terms and conditions as may be established by the Board.
- (2) The Board shall have sole discretion to determine what Condominium Properties may be considered for Membership and shall set criteria and standards for Condominium Properties. The Board shall set policies establishing the terms and scope of the representative's required authorization from the unit owners and the
association of owners controlling common areas and elements in a Condominium Property.
(3) The Regulatory Documents are intended to be applicable to Condominium Properties, including their units and common areas. However, the Board may waive compliance by Condominium Properties with any of the provisions of the Regulatory Documents which it determines not to be applicable or feasible.
(4) Condominium Properties may be associated with an existing Best Western Property. Such an association shall be subject to compliance with the provisions of Rule 500.45 of the Rules and Regulations pertaining generally to unit count increases or decreases to a Best Western Property.
(5) In the event an ambiguity or a conflict exists in the application of the provisions of this paragraph (E), the Board shall have the right to resolve the ambiguity or conflict in its sole and exclusive discretion.
Section 2. Membership
- (A) New Memberships
- (1) Applications for Membership shall be made on the Membership Application.
- (2) Applications for Membership shall be accompanied by payment in full of the appropriate Entrance Fee as established by the Board.
- (3) Applicants shall be elected to Membership only upon the favorable vote of five Directors.
- (4) The Board may not reduce, waive, or defer Entrance Fees, Monthly Fees, Annual Dues, or any other fees, dues, or assessments for Applicants. The exception to these limitations is the offering and acceptance of a Development Incentive.
- (B) Continuing Memberships
- (1) A schedule of Annual Dues, and any amendments or revisions in the Rules and Regulations shall be mailed to each Member on or before the 1st day of September each year.
- (2) (a) A Member, other than a Four-Year Member during the Four-Year Term, and an Extended-Length Member during an Extended-Length Term, desiring to continue Membership for an additional year shall make payment in full of the Annual Dues as determined by the Board for the additional year, prior to the 15th day of September of the current Membership year.
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the definition of 'Member' directly impacts the financial obligations outlined in the agreement. Membership is restricted to natural persons who own, operate, or manage a Best Western property. This definition is crucial because only those who qualify as Members are subject to the fees, dues, charges, and assessments imposed by Best Western.
The financial obligations for Best Western members include Entrance Fees, Annual Dues, and Monthly Fees, all established by the Board of Directors. These fees are designed to cover the costs of providing services to members. Monthly Fees for members approved on or after January 1, 2018, are determined annually by the Board, but can be 3.5% of Property Room Revenue if the member(s) had at least 50% financial ownership interest in the property as of July 1, 2016.
Members are obligated to pay these fees in a timely manner, and Best Western is authorized to automatically debit the member's bank account monthly for the amounts owed. Failure to pay on time results in interest charges of 1.5% per month on past due amounts. The Board can increase Annual Dues, Monthly Fees, and assessments no more than once per fiscal year, with increases limited to the lesser of 5% or the rate of inflation, unless a majority of all Members vote to approve a greater increase.