factual

How does the Best Western FDD define the applicability of Member-approved ballots to each member?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

The following are Ballots that were approved by the Best Western Membership but are not part of the Articles of Incorporation, Bylaws or Rules and Regulations. These Member-approved ballots apply to every Member in that they are Regulatory Documents as defined by Article I of the Bylaws.

AAA/CAA Official Appointment

Approved February 2009 – Beginning April 1, 2009, Best Western will annually renew each Member's American Automobile Association/Canadian Automobile Association (AAA/CAA) Official Appointment on behalf of the Member and add the cost to the Member's Best Western monthly statement.

Approved December 2006 – To approve the requirement that each North American Best Western Property which has not received a BWI exemption, shall receive designations as (1) a AAA/CAA designated Diamond-rated property, and (2) a AAA/CAA Official Appointment property, by December 31, 2007. Each North American Property shall maintain these AAA/ CAA designations in accordance with the Compliance Rules set forth in the Proposal Explanation, throughout the term of its Best Western Membership, unless notified by BWI's President that the AAA/CAA designation(s) is not required.

NOTE: The Exemption Rules set forth in the Ballot's Proposal Explanation are as follows:

Exemption from Compliance Rules:

Any Property which has received a statement in writing from AAA/CAA that it is not eligible for consideration as a AAA/CAA designated Diamond-rated hotel property may apply for, and upon submission of the AAA/CAA statement of ineligibility to BWI may receive, an exemption from the Compliance Rules described below ("Exemption"). By way of example, a Property which has received a statement from AAA/CAA that the Property is ineligible for consideration because it is a "Historic Property", listed on the National Register of Historic Places, may apply to BWI for and may receive an exemption from the Compliance Rules. Exemptions will not be granted for any failure of a Property to obtain AAA/CAA approval by reason of a failure to maintain quality standards or the like.

Source: Item 23 — Receipts (FDD pages 108–413)

What This Means (2025 FDD)

According to Best Western's 2025 Franchise Disclosure Document, member-approved ballots apply to every member. These ballots, while approved by the Best Western membership, are not included in the Articles of Incorporation, Bylaws, or Rules and Regulations. However, they are considered Regulatory Documents as defined by Article I of the Bylaws, making them applicable to all members.

One example of a member-approved ballot is the AAA/CAA Official Appointment. Approved in February 2009, it mandates that Best Western annually renew each member's American Automobile Association/Canadian Automobile Association (AAA/CAA) Official Appointment starting April 1, 2009. The cost of this renewal is then added to the member's monthly Best Western statement.

Another approved ballot from December 2006 requires that each North American Best Western property, without a BWI exemption, must obtain designations as both a AAA/CAA designated Diamond-rated property and a AAA/CAA Official Appointment property by December 31, 2007. These properties must maintain these designations throughout their Best Western membership, unless BWI's President provides notification that the AAA/CAA designation(s) is not required. Exemptions from these compliance rules are available for properties that have received written statements from AAA/CAA indicating ineligibility for consideration as a AAA/CAA designated Diamond-rated hotel property, such as historic properties listed on the National Register of Historic Places. However, exemptions are not granted for failures to maintain quality standards.

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.