How does the definition of 'System
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
With regard to applying the above MMA radius protections to a Qualified Hotel, System Hotels are divided into the following color-coded categories ("Category" or "Categories") for purposes of applying Rules 1 through 9:
- Rule 1: System Hotels in the same Category will have full MMA radius protection with respect to System Hotels in the same Category. For example, a Best Western System Hotel will have full MMA radius protection from a Best Western or SureStay System Hotel as both are in the same "blue" Category.
- Rule 2: System Hotels in the blue and green Categories will have one-half of the MMA radius protection with respect to System Hotels in the other color Category (i.e., blue or green, respectively). For example, a Best Western Plus System Hotel (green Category) will have one half the MMA radius protection from a Best Western System Hotel (blue Category) and vice versa.
- Rule 3: System Hotels in the blue and green Categories will not have any MMA radius protection from System Hotels in the orange and red Categories. For example, a Vīb System Hotel could be placed next to a Best Western System Hotel, although the Best Western System Hotel may request an Impact Analysis as described in the section below.
- Rule 4: System Hotels in the orange and red Categories do not have MMA radius protection against any hotel in a different color Category, although they may request an Impact Analysis as described in the section below.
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the term 'System Hotels' is used in the context of applying MMA (Market Modification Area) radius protections to qualified hotels. Best Western divides System Hotels into color-coded categories for applying Rules 1 through 9 regarding these protections.
Specifically, System Hotels are categorized into blue, green, orange, and red categories. Rule 1 states that System Hotels within the same category have full MMA radius protection from each other. For instance, a Best Western System Hotel (blue category) receives full MMA radius protection from another Best Western or SureStay System Hotel, as both are in the same 'blue' category.
However, Rule 2 indicates that System Hotels in the blue and green categories only have one-half of the MMA radius protection from System Hotels in the other color category (blue or green). For example, a Best Western Plus System Hotel (green category) will have half the MMA radius protection from a Best Western System Hotel (blue category) and vice versa. Furthermore, System Hotels in the blue and green categories have no MMA radius protection from System Hotels in the orange and red categories, as stated in Rule 3. Conversely, Rule 4 specifies that System Hotels in the orange and red categories do not have MMA radius protection against any hotel in a different color category. These rules dictate the extent to which a Best Western franchisee's territory is protected from encroachment by other Best Western-branded properties.