What happens if a Best Western applicant withdraws their application after contingent approval?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
For applications approved by the Board prior to January 1, 2018, (i) all fees, dues and charges for the remainder of the applicable term; and (ii) the cost of all goods and services provided by or ordered through Best Western for which payment has not yet been received.Additionally, an Extended-Length Member that received a De
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, an applicant who has received contingent approval and then withdraws their application faces specific financial obligations. The applicant must pay Best Western $4,000 per room as outlined in their Terms of Approval Letter. Additionally, they are responsible for covering the costs of any goods and services that Best Western has already provided or ordered on their behalf but for which payment has not been received.
This policy means that a Best Western applicant should carefully consider all aspects of their project and financing before proceeding to the point of contingent approval. Withdrawing after this stage can result in significant expenses, particularly for larger properties with many rooms. The per-room fee can quickly add up, creating a substantial financial burden even if the hotel project never comes to fruition.
It is important for prospective Best Western franchisees to fully understand the Terms of Approval Letter and to have a clear plan for satisfying all conditions before accepting contingent approval. They should also maintain open communication with Best Western regarding any potential challenges or changes in their project plans to minimize potential financial repercussions in case withdrawal becomes necessary. This policy is not uncommon in the franchise industry, as it protects the franchisor from losses incurred while preparing to onboard a new franchisee.