factual

Can Best Western enter into exclusive purchasing arrangements in the future?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

Except as described above, you currently may purchase all other products and services from any source of distribution as long as the product or service meets the requirements in the Regulatory Documents. We may enter into exclusive purchasing arrangements for particular products or services and to require that you purchase products or services from approved suppliers or distributors in the future.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 61–64)

What This Means (2025 FDD)

According to Best Western's 2025 Franchise Disclosure Document, Best Western has the ability to enter into exclusive purchasing arrangements for particular products or services in the future, requiring franchisees to purchase from approved suppliers or distributors. Currently, franchisees may purchase most products and services from any source, provided they meet the standards outlined in the Regulatory Documents.

Best Western mandates specific suppliers for certain items, such as signage, linens, terry products, bath amenities, and ICare® items. Additionally, franchisees must license the System's PMS from AutoClerk Cloud PMS, an affiliate of Best Western. The brand also requires franchisees to use its approved rate shopping service and rate optimization software subscription program. These existing requirements highlight Best Western's control over certain aspects of the supply chain and its ability to direct franchisee spending.

This ability to establish exclusive purchasing arrangements in the future could impact a franchisee's operating costs and flexibility. While franchisees currently have some freedom in sourcing products and services, Best Western could narrow these options, potentially affecting profit margins. Franchisees need to stay informed about any changes to approved supplier lists and purchasing requirements to ensure compliance and manage costs effectively. It is also important to note that Best Western can change the standards and specifications in the Regulatory Documents, which could affect the types, models, and brands of products and services a property uses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.