What happens to a Best Western membership if a lease of the Best Western property terminates?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- (A) Except as provided in Article II, Section 7(B) of these Bylaws, a Membership shall automatically terminate on the date of the occurrence of any one of the following events:
- (1) The Best Western Property is leased or subleased;
- (2) A lease of the Best Western Property terminates;
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a Best Western membership will automatically terminate if the lease of the Best Western property ends. This is according to Article II, Section 7(A)(2) of the bylaws. This automatic termination is one of several events that can trigger the end of a Best Western membership.
This means that if a franchisee is leasing the property where their Best Western hotel is located, the termination of that lease will result in the automatic termination of their Best Western membership. The franchisee would then lose the right to operate under the Best Western brand name and utilize Best Western's systems.
However, the document also states that a member may request an opportunity to be heard by the Board regarding the termination, submitting in writing at least 30 days prior to the effective date of the occurrence, the reasons why the automatic termination provisions are inapplicable and the termination should not occur. The Board has sole discretion to determine whether an event of automatic termination will or has occurred.