Are Best Western members required to pay the fees, dues, and assessments established by the Board?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Member agrees to timely pay all fees, dues, charges, and assessments imposed generally on the Membership by the Best Western Board of Directors ("Board") or the Membership, and the cost of all goods or services provided by or ordered through Best Western. Member agrees to allow Best Western to automatically debit Member's bank account each month in the amount owing Best Western. Member agrees to electronic monthly statements. Past due amounts shall bear interest at the rate of one and one half percent (1.5%) per month from the due date until paid, provided that such interest charge shall in no way authorize or excuse late payments or limit Best Western's rights and remedies against Member.
Section 6. Fees and Dues
(A) The Board shall establish Entrance Fees to be paid by Applicants. Such Entrance Fees may be changed by the Board from time to time, but cannot be waived. The exception to this limitation is the offering and acceptance of a Development Incentive.
(B) The Board shall establish Annual Dues to be paid by Members eligible for continuing Memberships. Annual Dues shall be established by the Board during each fiscal year for the succeeding fiscal year.
(C) The Board shall establish Monthly Fees designed to cover the cost of providing services to Members. Monthly Fees for Members approved by the Board on or after January 1, 2018, shall be as determined by the Board annually, prior to the following fiscal year; however, if a Member has or Members collectively have a minimum of a fifty percent (50%) financial ownership interest in the Applicant Best Western Property at the time of the Board's application approval, the Monthly Fees shall be three and one-half percent (3 ½%) of Property Room Revenue. For the purpose of an Applicant being eligible for a Monthly Fee of three and one-half percent (3 ½%) of Property Room Revenue, the Members or Members must have each and all been a Member as of July 1, 2016.
(D) Annual Dues, Monthly Fees, and assessments may be increased by the Board no more often than once in each fiscal year. No such annual increase shall exceed the lesser of (1) five percent (5%), or (2) the rate of inflation for the previous year, as measured by the United States Bureau of Labor Statistics Consumer Price Index (all items for all urban areas), unless a majority of all Members vote to approve a greater increase in accordance with Article III, Section 5
1100.5 If a Member fails to pay dues or other fees or assessments (other than Annual Dues) within the time period provided for in the Bylaws, Rules and Regulations or orders or directives issued by the Board, and if such dues, fees or assessments remain unpaid for thirty (30) days after the date of written notice of delinquency is sent to the Member by Best Western Headquarters, or no other satisfactory arrangement has been made for liquidation of the indebtedness, the Board may cancel the Membership pursuant to Article II, Section 8(C) and (D) of the Bylaws and Chapter XII of these Rules and Regulations. This Section does not govern automatic termination of Membership for failure to pay Annual Dues by September 15, which is dealt with in Article II, Section 2(B)(2) of the Bylaws, and does not limit the Board's option to restrict services under Rule 1100.8.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, members are obligated to pay fees, dues, charges, and assessments imposed by the Best Western Board of Directors. These payments must be made in a timely manner. Best Western is also authorized to automatically debit the member's bank account monthly for the amounts owed, and members receive electronic monthly statements. Failure to pay on time results in interest accruing at a rate of 1.5% per month on the outstanding balance.
The Best Western Board of Directors establishes various fees, including Entrance Fees, Annual Dues, and Monthly Fees. The Board can change the Entrance Fees but cannot waive them, except when offering a Development Incentive. Annual Dues are determined each fiscal year for the following fiscal year. Monthly Fees for members approved on or after January 1, 2018, are determined annually by the Board. However, a different Monthly Fee structure applies if members have at least a 50% financial ownership in the Best Western property at the time of application approval; in this case, the Monthly Fees are 3.5% of Property Room Revenue, provided the members were members as of July 1, 2016.
The Best Western Board can increase Annual Dues, Monthly Fees, and assessments, but no more than once per fiscal year. These annual increases are capped at the lesser of 5% or the rate of inflation for the previous year, as measured by the United States Bureau of Labor Statistics Consumer Price Index, unless a majority of all members vote to approve a greater increase. This limitation does not apply to members paying Monthly Fees as a percentage of Property Room Revenue. Failure to pay dues or other fees or assessments (other than Annual Dues) within the stipulated time may lead to cancellation of the membership if the amounts remain unpaid for 30 days after written notice of delinquency.