When does final approval become effective for Best Western membership applications from prospective purchasers?
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.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, final approval of a membership application is effective from the date the final approval is granted by the Board of Directors. However, this is contingent upon the applicant satisfying all conditions or contingencies imposed by the Board.
Best Western's Board of Directors has the discretion to approve applications with specific conditions. The applicant isn't officially a member until they provide satisfactory proof that all these conditions have been met. This means that even if customary membership services begin during the contingency period, it doesn't equate to full membership status.
For prospective purchasers or transferees of lodging facilities with existing Best Western memberships, this implies that the final approval and its effective date are crucial. Franchisees need to ensure all conditions set by the Board are fulfilled promptly to gain full membership status and avoid any potential delays or complications in operating under the Best Western brand.