In the Best Western International, Inc. v. Brookfield Ventures, LLC case, what was the reason the Best Western Premier Milwaukee-Brookfield Hotel & Suites terminated its membership?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
, 2022; Counterclaim filed August 1, 2022).
The Member for the Best Western Premier Milwaukee-Brookfield Hotel & Suites ("Former Member") terminated its Membership with us by self-termination, effective December 2020. At the time of the self-termination, the Former Member had a large, outstanding balance owed to us. On January 10, 2022, we filed a complaint against the owner of the Former Member, Brookfield Ventures, LLC, and its voting member, for their failure to pay the outstanding account and fees and dues owed following the selftermination. The Former Member filed a counterclaim against us for breach of contract, breach of the implied covenant of good faith and fair dealing, fraud, and negligent misrepresentation. The Former Member sought approximately $15.4 million in lost profits, reliance damages for renovations, punitive damages, attorneys' fees and extracontractual damages. We denied any wrongdoing and disputed the allegations and damages sought in the counterclaim. On December 1, 2023, the parties settled the case with mutual releases of all claims per a confidential settlement agreement, the disclosure of which is only allowed if required by applicable law or court order. The parties agreed
Source: Item 2 — Business Experience (FDD pages 12–21)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Best Western Premier Milwaukee-Brookfield Hotel & Suites ("Former Member") terminated its membership by self-termination, effective December 2020. At the time of this self-termination, the Former Member had a large, outstanding balance owed to Best Western. This outstanding balance led to legal action.
Best Western filed a complaint on January 10, 2022, against Brookfield Ventures, LLC, the owner of the Former Member, and its voting member, for failure to pay the outstanding account, fees, and dues. The Former Member then filed a counterclaim against Best Western, alleging breach of contract, breach of the implied covenant of good faith and fair dealing, fraud, and negligent misrepresentation. The Former Member sought approximately $15.4 million in lost profits, reliance damages for renovations, punitive damages, attorneys' fees, and extracontractual damages.
Best Western denied any wrongdoing and disputed the allegations and damages sought in the counterclaim. Ultimately, on December 1, 2023, the parties settled the case with mutual releases of all claims per a confidential settlement agreement. The Former Member agreed to pay Best Western $25,000 as part of the settlement. The disclosure of the settlement terms is only allowed if required by applicable law or court order.