What happens if a Best Western applicant fails to comply with the conditions during the contingency period?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
A contingently-approved Applicant that withdraws its application or is cancelled/terminated shall pay to Best Western: (i) $4,000 per room as described in the Applicant's Terms of Approval Letter, and (ii) the cost of all goods and services provided by or ordered through Best Western for which payment has not yet been received.
D. 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.
- (8) A Member or Member with Conditions fails to maintain and provide proof of insurance coverage as required by the Rules and Regulations.
- (9) A term or condition is not met by a Member whose Membership Application was approved by the Board with specific requirements and time frames for compliance prior to final approval of the Membership and has been advised that failure to meet any of these requirements will be grounds for automatic cancellation.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, several consequences may arise if an applicant fails to meet the conditions during the contingency period. Best Western may terminate the contingent approval if an applicant fails to maintain and provide proof of required insurance coverage. Additionally, if the Board approved the Membership Application with specific requirements and time frames for compliance before final approval, failure to meet these terms or conditions can lead to automatic cancellation.
Furthermore, a contingently-approved applicant who withdraws their application or faces cancellation/termination must pay Best Western $4,000 per room as outlined in the Applicant's Terms of Approval Letter. They must also cover the cost of all goods and services provided by or ordered through Best Western for which payment has not been received.
Best Western 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, this commencement of customary membership services should not be construed as granting Membership status to the Applicant.