If a Best Western applicant is approved with contingencies, when does the membership become effective?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
D. The Board may act upon other Membership Applications by approving such applications subject to one or more contingencies or conditions imposed by the Board in its sole discretion. If such contingent approval is given, the Applicant shall not be entitled to Membership until the Board has received proof, satisfactory to it, that all such conditions or contingencies have been timely satisfied. Such final approval, if granted, shall be effective from the date the final approval is granted. 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.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, if the Board approves a membership application with contingencies, the applicant is not entitled to membership until they provide satisfactory proof that all conditions or contingencies have been met in a timely manner. Final approval, if granted, becomes effective on the date the final approval is granted by the Board.
During the contingency period, Best Western may allow customary membership services to commence at the property. However, this commencement of services does not grant the applicant membership status. The applicant must agree to comply with the stated conditions, and pay the established fees, dues, and assessments for the period, as well as the cost of any goods or services provided by or ordered through Best Western, regardless of whether the application is ultimately approved.
This means that a prospective Best Western franchisee might begin operating under some Best Western systems and avail of certain services while still needing to fulfill specific requirements. However, they are not officially a member until the Board gives its final approval after all contingencies are satisfied. This ensures that Best Western maintains its standards and that the franchisee is fully compliant before gaining full membership status.