When does the initial term of the Best Western agreement and membership rights begin?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
reement is the date of execution; however, Membership rights shall not be granted until such time as the Property has been activated on Best Western's reservations systems and the Extended-Length Term of twenty (20) years (two hundred and forty (240) months) has begun.
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- The initial term of this Agreement, and any and all Membership rights, shall begin on the first day the Member's Property is activated on Best Western's reservations systems and will end on the last day of Best Western's fiscal year during which the last day of the two hundred and fortieth (240th) month falls ("Extended-Length Term"). Thereafter, this Agreement shall automatically renew for successive one hundred and twenty (120) month terms (each a "Renewal Term") unless either Best Western or the Member provides the other with written notice of its intent to not renew at least twelve (12) months prior to the end of the then-current Term.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the initial term of the agreement and membership rights begins on the first day the member's property is activated on Best Western's reservation system. This term extends until the last day of Best Western's fiscal year during which the 240th month (20 years) falls. This is referred to as the "Extended-Length Term."
Following the Extended-Length Term, the agreement automatically renews for successive 120-month terms (10 years), each designated as a "Renewal Term." Either Best Western or the member can prevent renewal by providing written notice of their intent not to renew at least 12 months before the end of the current term. The Extended-Length Term and any Renewal Terms are collectively referred to as the "Term."
If a Best Western membership is transferred during the Term, according to specific sections of Best Western's Bylaws, the remaining portion of the Term will also transfer to the new member. This ensures continuity of the agreement even if the property ownership changes hands.