How long does the independent third-party have to complete the investigation regarding a Best Western Director's qualifications?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Counsel shall engage an independent third-party to conduct an inquiry related to the Respondent's qualifications. The General Counsel shall promptly advise the Board in writing of the engagement.
- (2) The independent third-party shall conduct an impartial investigation regarding the Respondent's Article IV qualifications. The independent thirdparty shall consider all competent, relevant evidence. The Board and the Respondent shall cooperate fully in the investigation and provide any requested relevant documents and information to the independent third-party. Within the scope of the investigation, the Board and the Respondent shall execute all documents requested by the independent third-party directly related to the obtaining of documents and information.
- (3) All reasonable efforts shall be made by the independent third-party to complete the investigation within 30 days of engagement.
- (4) The independent third-party shall produce a written report that includes findings of fact and conclusions as to whether the Respondent meets the Director qualification requirements of Article IV. The independent third-party shall use a preponderance of the evidence standard.
- (5) The written report shall be provided to the General Counsel who shall provide the report to the Board, including the Respondent, within three business days of receipt.
- (6) The General Counsel will present the report at an open session Board meeting within 30 days of receipt of the written report.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, when there is a question regarding a Director's qualifications, an independent third-party is engaged to conduct an investigation. The independent third-party is expected to make all reasonable efforts to complete this investigation within 30 days of being engaged.
This 30-day timeframe is significant because it sets an expectation for how quickly such matters should be resolved. It suggests that Best Western aims to address concerns about Director qualifications in a timely manner. For a prospective franchisee, this indicates a commitment to due process and efficient governance within the organization.
Following the investigation, the independent third-party will produce a written report with findings of fact and conclusions about whether the Director meets the requirements. This report is then provided to Best Western's General Counsel, who has three business days to distribute it to the Board, including the Director in question. The General Counsel then presents the report at an open session Board meeting within 30 days of receiving the written report.
Overall, this process reflects Best Western's structured approach to addressing potential issues with Director qualifications, ensuring that investigations are conducted impartially and resolved within a defined timeframe.