What is the initial term length for a Best Western agreement?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
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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. The Extended-Length
Term and Renewal Term(s) may be collectively referred to herein as the "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 Membership Agreement, along with any Membership rights, begins on the first day the member's property is activated on Best Western's reservation systems. This initial term extends for an "Extended-Length Term" of twenty (20) years, which is equivalent to two hundred and forty (240) months, and concludes on the last day of Best Western's fiscal year during the 240th month.
Following the initial term, the agreement automatically renews for successive one hundred and twenty (120) month terms, each referred to as a "Renewal Term." This renewal is automatic unless either Best Western or the member provides written notice of their intent not to renew. Such notice must be given at least twelve (12) months before the end of the then-current term.
For prospective franchisees, this means a significant long-term commitment. The initial 20-year term provides stability but also requires careful consideration of the long-term business outlook. The automatic renewal clause necessitates proactive communication if a franchisee decides not to continue with the Best Western brand beyond the initial or any subsequent renewal term. Franchisees should be aware of the implications of these terms and plan accordingly.