How is the "Member Market Area" defined for a Best Western Qualified Hotel?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
A Membership Application for a Property located within the Member Market Area of a Qualified Hotel will not be accepted. An exception to this will apply only if the Voting Member responsible for each Affected Qualified Hotel advises the Board in writing that the Member has no objection to approval of the Membership Application.
The radius of a Member Market Area shall be measured by a global positioning system selected by the Board. Market category criteria will be as determined by Smith Travel Research or such other means as selected by the Board, subject to final approval by the Board. The Board, by an affirmative vote of five Directors, may adjust the Member Market Area radius for each property type and market category based upon an analysis of data from additional impact studies. Such adjustments of radii shall occur: (i) not more frequently than every five years; and (ii) only upon a prior favorable vote and recommendation of two-thirds (2/3) or more of the votes cast by Governors present at any Governors Conference.
(b) The Member Market Area radius may be altered by a Board policy that fairly and equitably accounts for obstacles or barriers (such as mountains, lakes and major airports) that materially affect the travel time or travel distance between a Member and an Applicant and thereby reduce the likelihood that the Applicant's Property will have an incremental
If a Membership is transferred to another designated Property in accordance with Article II, Section 4 of these Bylaws, the Member Market Area will be determined by the property type of the newly designated Property regardless of the Member Market Area of the previous Best Western Property.
Best Western brands shall be placed in the following
"buckets": Midscale Best Western SureStay Brands Upper Midscale Best Western Plus BW Signature Collection GLō Upscale Boutique Vīb Aiden Upscale Best Western Premier BW Premier Collection Extended Stay @Home by Best Western Executive Residency
The following rules shall apply to Membership Applications:
Rule 1: Brands in all of the colored buckets will have full MMA protection regarding hotel applications for brands in their same colored bucket. For example, a Best Western branded hotel will have its full MMA protection for a Best Western or SureStay application (both being in the "blue" band).
Accordingly, Best Western may inform nearby Best Western hotels of this Application.
Applicant expressly consents to this disclosure and waives any
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a "Member Market Area" (MMA) for a Qualified Hotel is considered when assessing new membership applications. A new Best Western property application will generally not be accepted if the location falls within the MMA of an existing, qualified Best Western member, unless the existing member provides written consent to the Board for the application's approval.
The Best Western FDD states that the radius of a Member Market Area is determined using a global positioning system selected by the Board. The market category criteria are determined by Smith Travel Research or another method chosen and approved by the Board. The Board has the authority to adjust the MMA radius for each property type and market category based on data from impact studies, but these adjustments can only occur every five years and require a favorable vote and recommendation from two-thirds of the Governors present at a Governors Conference.
Furthermore, the Board can modify the MMA radius based on obstacles or barriers like mountains, lakes, or major airports that affect travel time or distance between a member and an applicant. This adjustment aims to account for factors that reduce the likelihood of the applicant's property significantly impacting existing members. If a Best Western membership is transferred to a new property, the MMA is determined by the new property's type, regardless of the previous property's MMA. Best Western brands are placed in buckets, and brands in the same colored bucket will have full MMA protection regarding hotel applications for brands in their same colored bucket. For example, a Best Western branded hotel will have its full MMA protection for a Best Western or SureStay application.
These market area considerations are crucial for prospective franchisees as they directly impact the potential for competition from other Best Western properties. Understanding the MMA and how it is determined can help a franchisee assess the viability of a location and the potential impact of new Best Western hotels in the surrounding area. It is important to note that Best Western may inform nearby Best Western hotels of a new application and that the applicant expressly consents to this disclosure.