What is the legal structure of Best Western International, Inc.?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 1
THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES
The Licensor
The licensor is Best Western International, Inc. ("we", "us", or "our"). "You" means the individual or entity that signs the Membership Agreement – the "Member". If you are a business entity, "you" means both the business entity and its owners. "System Hotels" refers to hotels operating under the System (as defined below) using the Best Western Identifying Marks (defined below). The "Property" refers to the hotel you will operate under a Membership Agreement. If we have an agent in your state for service of process, we disclose that agent in Exhibit B.
We are an Arizona nonprofit corporation formed on December 13, 1957, with a principal business address located at 6201 N. 24th Parkway, Phoenix, AZ 85016. We operate: (i) as a membership association and licensor under Best Western Identifying Marks (defined below), including, without limitation, the "Best Western®", "Best Western Plus®", "Best Western Premier®", "Executive Residency by Best Western®", "@Home by Best WesternSM", "Vīb®", "GLō®", and "Aiden®" names; and (ii) as a licensor under the "BW Premier Collection®" and "BW Signature Collection®" names (the "Premier Marks" and the "Signature Marks," which are referred to collectively as the "Collection Marks"), and under no other name.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD page 8)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, Best Western International, Inc. is structured as an Arizona nonprofit corporation. It was originally formed on December 13, 1957. The company operates as a membership association and licensor of the Best Western Identifying Marks. These marks include names like "Best Western®", "Best Western Plus®", and others, as well as the "BW Premier Collection®" and "BW Signature Collection®" names.
As a nonprofit membership organization, Best Western's primary goal is to provide revenue-generating opportunities and enhance the marketing and purchasing power for its members, who are the holders of the company's membership interests. This structure differentiates it from a traditional for-profit franchise model, where the franchisor's primary aim is to maximize profits for its shareholders.
However, Best Western also has for-profit subsidiaries. These include SureStay, Inc., which operates as a traditional franchisor, as well as entities involved in soft brand licensing, property management systems (AutoClerk, Inc.), and hotel ownership/operation (BWI DevCo Tempe, LLC and Denver 3560, LLC). This mixed structure allows Best Western to pursue both member-focused and profit-driven activities within its overall business model.
For a prospective franchisee, this structure means that while Best Western itself operates as a non-profit, some of its subsidiaries like SureStay operate under a traditional for-profit franchise model. Therefore, the specific terms and conditions of the franchise agreement may vary depending on whether the agreement is directly with Best Western or one of its subsidiaries.