Does the General Manager for a Best Western franchise need to have an equity interest in the property or the franchisee?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Whether you are an individual, corporation, limited liability company, partnership or other entity, you must at all times retain and exercise direct management control over the Property's business. If you operate a Best Western, a Best Western Plus, a Best Western Premier, an Executive Residency by Best Western, an @Home by Best Western, a Vīb, or a GLō System Hotel you are required to fulfill this responsibility only by providing qualified and experienced management, which may be (i) a management company that meets our then-current Standards and is approved by us to operate the Property, or (ii) a full-time, dedicated, on-premises general manager ("General Manager"). If you operate an Aiden System Hotel you are required to fulfill this responsibility only by hiring a management company that meets our then-current Standards and is approved by us to operate the Property. We may reject a proposed management company if we determine that it is unwilling or unable to comply with all requirements under our then-current Standards. You are required at all times to provide to us up-to-date information regarding the name and contact information of the management company (if applicable) and the General Manager. Your General Manager does not need to have an equity interest in the Property or you.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD page 87)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the General Manager is not required to have an equity interest in the property or the franchisee. Best Western mandates that franchisees retain direct management control over the property's business, which can be achieved through a qualified management company or a full-time, on-premises General Manager.
For Best Western, Best Western Plus, Best Western Premier, Executive Residency by Best Western, @Home by Best Western, Vīb, or GLō System hotels, franchisees can fulfill the management responsibility by either hiring a management company that meets Best Western's standards or by employing a full-time General Manager. Aiden System Hotels specifically require the use of an approved management company. Best Western retains the right to reject a proposed management company if it does not meet the required standards.
Franchisees must keep Best Western informed about the contact information for the management company or the General Manager. This ensures that Best Western can maintain communication and oversight of the property's operations. The flexibility in management options allows franchisees to choose the structure that best suits their investment and operational preferences, without mandating equity stake for the General Manager.