What is a 'Development Incentive' in the context of a Best Western Extended-Length Membership?

According to Best Western's 2025 Franchise Disclosure Document, a 'Development Incentive' is an incentive that the Best Western Board has the authority to offer to prospective members. If an applicant accepts a Development Incentive, they must agree to an Extended-Length Term of no less than ten years. The specific Monthly Fees for these members are determined by the Board.

If a Best Western Extended-Length member who received a Development Incentive resigns, is terminated, or is cancelled, they must pay Best Western a pro-rata amount of the Development Incentive. This amount is based on the length of time remaining in the Extended-Length Term. This means that the earlier a member leaves the Best Western system, the more of the incentive they will have to repay.

This repayment obligation also applies if the Extended-Length Membership is transferred to another party. In such cases, the original member remains jointly and severally liable with the new member for the repayment of the pro-rata amount of the Development Incentive. This ensures that Best Western can recover the incentive if the new member also leaves before the end of the Extended-Length Term. This condition incentivizes the original member to ensure the ongoing success of the transferred property under the Best Western brand.