What happens if a Best Western Member fails to provide a Certificate of Insurance?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Member and each contingently approved Applicant shall annually provide Best Western with a Certificate of Insurance, on forms provided by Best Western, evidencing a policy or policies meeting the above requirements. The Certificate of Insurance shall be provided with the contingent Applicant certification agreement or prior to or upon expiration of the current Certificate of Insurance on file with Best Western. Failure to provide the Certificate of Insurance shall result in automatic termination in accordance with the provisions of Article II, Section 7 of the Bylaws. As a condition of contingent approval, each Applicant, upon notification by Best Western that Best Western intends to contingently approve the Application, shall provide Best Western with a Certificate of Insurance, on forms provided by Best Western, evidencing a policy or policies meeting the above requirements. This requirement shall be met prior to activation of services, installation or display of any Best Western signs, or advertising or disclosure of any Best Western association. Failure to maintain the insurance coverage required by this rule shall be grounds for termination of Membership in accordance with the provisions of Article II, Section 8 of the Bylaws, immediate suspension of services and termination of contingent approval as may
be prescribed in the Rules and Regulations of Best Western.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, each Best Western Member and contingently approved applicant must provide Best Western with a Certificate of Insurance annually, using Best Western's forms, to prove they have the required insurance policies. This certificate must be provided with the contingent applicant certification agreement or before the current certificate expires. For applicants with contingent approval, this certificate must be provided before activating services, installing Best Western signs, or advertising any Best Western association.
Failure to provide the Certificate of Insurance will result in automatic termination of the membership, according to Article II, Section 7 of the Bylaws. Additionally, failure to maintain the required insurance coverage can lead to membership termination per Article II, Section 8 of the Bylaws, immediate suspension of services, and termination of contingent approval, as outlined in Best Western's Rules and Regulations.
This requirement ensures that all Best Western properties maintain adequate insurance coverage, protecting both the individual property owner and the Best Western brand from potential liabilities. Prospective franchisees should ensure they understand the specific insurance requirements and maintain up-to-date certificates to avoid potential termination of their membership or suspension of services.