What is the effective date of final approval for Best Western membership applications approved with contingencies?
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, if the Best Western Board approves a membership application with contingencies, the applicant is not officially a member until they provide satisfactory proof that all conditions have been met. The effective date of the final approval is the date on which the Board grants this final approval.
During the period when the application is contingent, Best Western may allow the applicant to commence customary membership services. However, this commencement of services does not grant the applicant full membership status. The applicant must agree to comply with all stated conditions and pay the necessary fees, dues, and assessments for the services provided during this period, regardless of whether the application is ultimately approved.
This means that a prospective Best Western franchisee might begin operating under certain Best Western services and standards before full approval, but they are still subject to meeting all stipulated contingencies. Failing to meet these conditions will prevent the applicant from achieving full membership status, even after having paid fees and commenced some operations. Therefore, applicants need to carefully understand and comply with all conditions set by the Board to ensure their membership is finalized.