When does final approval become effective 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 considered a member until they provide satisfactory proof that all conditions have been met. Final approval, if granted, becomes effective on the date the final approval is granted by the Board.
During the contingency period, Best Western may allow the property to commence customary membership services, provided the applicant agrees to comply with the conditions and pay the necessary fees, dues, and assessments. This arrangement does not grant the applicant full membership status.
This means that a prospective Best Western franchisee needs to be aware that even if their initial application is conditionally approved, they are not officially a member until all stipulated conditions are fulfilled to the satisfaction of the Board. The actual date of final approval is the key date for determining membership status and associated rights.