How are the fees determined for a Best Western Membership transfer, and can these fees be waived?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
The Board may establish reasonable fees to cover the Corporation's reasonable costs of a transfer of Membership. Where a change in equitable ownership or lessee interest occurs in connection with one of the following transactions, the transferee's rights and obligations as a Member shall be effective as of the date of the change in equitable ownership or lessee interest provided each of the requirements set forth herein is satisfied within the 30 days or other time set by the Board.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Board of Directors has the authority to establish reasonable fees to cover the corporation's costs associated with a membership transfer. These fees are not explicitly defined in terms of a specific amount or percentage but are intended to cover the administrative expenses Best Western incurs during the transfer process.
However, the FDD indicates some flexibility regarding these fees. The Board may set more lenient schedules for transferees to meet requirements, including paying transfer fees, suggesting that the timing of payment can be adjusted. Additionally, under certain conditions, such as when a member has maintained a passing property assessment score and has provided necessary documentation to the transferee, the requirements applicable to the transferor are transferred to the transferee without alteration.
Furthermore, the Board retains the discretion to waive the 30-day advance written notice requirement for a change in ownership if the circumstances of the transfer warrant it. While the document does not explicitly state that transfer fees can be waived outright, the Board's authority to set fees and adjust schedules implies some level of discretion in their application. A prospective franchisee should clarify with Best Western the specific transfer fees applicable to their situation and whether any conditions exist under which these fees could be adjusted or waived.
In the broader context of franchise agreements, it is not uncommon for franchisors to charge transfer fees to cover administrative costs and ensure that the new franchisee meets the brand's standards. The specifics of these fees, including the amount and conditions for potential waivers, can vary significantly between different franchise systems.