For Best Western, what information is required regarding the date interest was assumed in the property?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
ns of Membership, which, if past due, would constitute grounds for cancellation of Membership; and (e) the transferor is current with respect to all dues, fees and assessments, then in such instance, all requirements, including completion time frames, then applicable to the transferor shall be transferred to and assumed by the transferee without alteration. The Member shall give the Corporation at least 30 days advance written notice of the intended change in ownership. The Board may waive the notice requirement if it determines that the circumstances of the transfer do not or did not permit giving 30 days advance notice to the Corporation.
Where a change in ownership occurs, the transferee's rights and obligations as a Member shall be effective as of the date of the change in equitable ownership or lessee interest provided each of the requirements set forth above was satisfied, and the transferee completes and signs all forms then required by the Corporation and pays all transfer fees within 20 days following the change or such more liberal schedule as may be set by the Board.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, when a change in ownership occurs, the transferee's rights and obligations as a member become effective on the date of the change in equitable ownership or lessee interest. This is contingent upon meeting specific requirements and completing all necessary forms required by Best Western, including paying all transfer fees within 20 days following the change, or according to a more flexible schedule set by the Board.
Specifically, the document states that to establish equity interest in a Best Western property, the following must be provided: recorded title to the property, relevant corporate filings showing ownership interest among owners, partners, members, or shareholders, relevant tax filings, and any relevant agreements or trust documents among owners, partners, members, or shareholders. Failure to provide the required equity interest ownership documentation will create a presumption that the candidate or director is not qualified to serve.
Furthermore, Best Western requires at least 30 days' advance written notice of any intended change in ownership. However, the Board has the authority to waive this notice requirement if the circumstances of the transfer do not permit providing 30 days' advance notice to the Corporation. This ensures Best Western is informed and can prepare for the transfer of membership rights and obligations.
These stipulations ensure that Best Western maintains control over its membership and that new members meet the brand's standards and obligations. Prospective franchisees should be aware of these requirements and ensure they can meet them to avoid delays or complications in the transfer of ownership.