How often do Best Western members pay the fee established by the Board?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
ligations, as may be established from time to time in Best Western's Regulatory Documents, all of which are accessible to Member or available upon request. This Agreement incorporates the rights and obligations of the Regulatory Documents, as amended from time to time.
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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.
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- When grounds for cancellation or termination exist because of a Member default (as more fully set forth below), the Board may, in lieu of cancellation or termination, impose additional conditions to Membership. These may include, for example, higher quality assurance requirements, additional design requirements, or restriction of rights or services.
B. Term
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- The Effective Date of this Agreement is the date of execution; however, Membership rights shall not be granted until such time as the Property has been activated on Best Western's reservations systems and the Extended-Length Term of twenty (20) years (two hundred and forty (240) months) has begun.
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- The initial term of this Agreement, and any and all Membership rights, shall begin on the first day the Member's Property is activated on Best Western's reservations systems and will end on the last day of Best Western's fiscal year during which the last day of the two hundred and fortieth (240th) month falls ("Extended-Length Term"). Thereafter, this Agreement shall automatically renew for successive one hundred and twenty (120) month terms (each a "Renewal Term") unless either Best Western or the Member provides the other with written notice of its intent to not renew at least twelve (12) months prior to the end of the then-current Term. The Extended-Length
Term and Renewal Term(s) may be collectively referred to herein as the "Term."
3.
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 various fees, dues, and assessments imposed by the Best Western Board of Directors. Specifically, the document states that members agree to allow Best Western to automatically debit the member's bank account each month for the amount owed. This implies that fees are generally paid on a monthly basis through automatic debits. Members also receive electronic monthly statements detailing these charges.
In addition to monthly fees, Best Western members also pay annual dues. These annual dues are established by the Board during each fiscal year for the succeeding fiscal year. The FDD states that annual dues are billed and payable each year for continuing membership during the succeeding year and are recognized as revenue ratably in the year to which the continuing membership applies.
Furthermore, the Best Western Board has the authority to increase annual dues, monthly fees, and assessments, but can do so no more than once per fiscal year. Any such annual increase is limited to 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 that pay monthly fees as a percentage of property room revenue. Failure to pay dues or other fees or assessments within the specified time period may result in cancellation of the membership if the amounts remain unpaid for 30 days after written notice of delinquency.