factual

What kind of proof does the Best Western Board require to show that conditions or contingencies have been satisfied?

Best_Western Franchise · 2025 FDD

Answer 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 Best Western Board approves a membership application with specific contingencies or conditions, the applicant won't officially become a member until the Board receives proof that these conditions have been met. The proof must be satisfactory to the Board, meaning they have the final say on whether the conditions are truly fulfilled. The effective date of the final approval is the date it is granted by the Board.

Best Western may allow a property to begin customary membership services while the application is still contingent. However, this commencement of services doesn't automatically grant full membership status. The applicant must still adhere to the agreed-upon conditions and pay all associated fees, dues, and costs for any goods or services they receive from Best Western during this period. This ensures that Best Western is compensated for its services even if the application is ultimately not approved.

This process protects Best Western by ensuring that new members meet all necessary requirements before fully joining the organization. For potential franchisees, it means being prepared to provide thorough documentation and evidence to satisfy the Board's requirements. It also highlights the importance of understanding all conditions and contingencies attached to the approval to avoid delays or potential denial of membership.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.