Does the General Manager for a Best Western property 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, a General Manager is not required to have an equity interest in the Best Western property or the franchisee. The franchisee must retain and exercise direct management control over the property's business, which can be fulfilled by providing qualified and experienced management. This can be achieved through a management company approved by Best Western or a full-time, dedicated, on-premises General Manager.
This provides flexibility for Best Western franchisees, as they can hire a qualified General Manager without having to offer equity in the business. This arrangement allows the franchisee to maintain full ownership and control of their investment while still ensuring the property is professionally managed. The franchisee is required to provide up-to-date information to Best Western regarding the management company or the General Manager.
However, the franchisee must ensure that the General Manager complies with Best Western's standards for training and maintains a General Manager who has completed the required initial and ongoing training. Additionally, the franchisee is responsible for paying a fee for the new or replacement General Manager to attend the General Manager Professional Development Training and Leadership Training. This ensures that the General Manager is well-equipped to manage the Best Western property according to the brand's standards.
Best Western also requires franchisees to implement procedures to prevent unauthorized use or disclosure of proprietary information, including the use of non-disclosure and non-competition clauses in agreements with employees, agents, and independent contractors who have access to the information. This protects Best Western's confidential business information and maintains the integrity of the brand.