Can Best Western operate competing brands or businesses near a franchisee's property?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
tion and/or an Impact Analysis, the Board shall have the right in its sole discretion to resolve the conflict or ambiguity or select appropriate data on which to rely.
Except for our restrictions within the Property's MMA and your right to request an Impact Analysis as described above, we and our affiliates have the right to engage in any other businesses of any nature, whether in the lodging or hospitality industry or not, and whether under the Best Western Identifying Marks, a competing brand, or otherwise, even if they compete with the Property or the Best Western Identifying Marks, and whether we or our affiliates start those businesses, or purchase, merge with, acquire, are acquired by, come under common ownership with, or associate with, such other businesses. We may also use or license to others all or part of the system for operating hotels under the Best Western Identifying Marks; use the facilities, programs, services and/or personnel used in connection with the system for operating hotels under the Best Western Identifying Marks in other businesses; use the system for operating hotels under the Best Western Identifying Marks and the Best Western Identifying Marks in other businesses; and add, alter, delete or otherwise modify elements of the system for operating hotels under the Best Western Identifying Marks.
Agreed-upon MMA radius and Impact Analysis Rights radius are negotiated terms of the Membership Agreement. They are agreed upon considering all relevant facts (e.g., location of the Site, your Hotel room count, hotel density in the area, population, demand generators, etc.).
We are not restricted from soliciting or accepting reservations from customers located inside
your MMA. We and our affiliates may use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to accept reservations under the Property's Best Western Identifying Marks and under other trademarks from customers located in your MMA. We do not need to pay you any compensation for soliciting or accepting reservations from customers located inside your MMA. You are not restricted from soliciting reservations from customers located outside of your MMA, except that all of your advertising is subject to our advance written approval. While you may accept reservations from customers located outside of your MMA, you may only do so through the approved reservation service we furnish to you. You may not use an individual hotel website, booking engine, extranet, channel manager or any other channel of distribution to accept reservations.
Upon a System Hotel providing notice of cancellation of its Membership Agreement, the System Hotel forfeits its MMA and Impact Analysis rights such that we can begin efforts to replace the System Hotel in the market.
We, SureStay, Inc. and certain of our and SureStay Inc.'s affiliates and subsidiaries operate hotels under the Best Western, Best Western Plus, Best Western Premier, Executive Residency by Best Western, @Home by Best Western, Vīb, GLō, Aiden, BW Premier Collection, BW Signature Collection, SureStay by Best Western, SureStay Plus by Best Western, SureStay Studio by Best Western, SureStay Collection by Best Western and WorldHotels Collection names. (We share offices with SureStay, Inc. and some of our and SureStay, Inc.'s affiliates and subsidiaries and we disclose the principal business addresses for WH in Item 1.) We, SureStay, Inc.
Source: Item 12 — Territory (FDD pages 77–84)
What This Means (2025 FDD)
According to the 2025 Best Western FDD, Best Western and its affiliates have broad rights to engage in other businesses, including those that compete with a franchisee's property. Except for restrictions within a property's Member Market Area (MMA) and a franchisee's right to request an Impact Analysis, Best Western can operate competing brands or businesses, even under the Best Western Identifying Marks. This includes starting new businesses, purchasing existing ones, or associating with other businesses, regardless of whether they compete with the franchisee.
Best Western, SureStay, Inc., and their affiliates operate hotels under various names, including Best Western, Best Western Plus, Best Western Premier, Executive Residency by Best Western, @Home by Best Western, Vīb, GLō, Aiden, BW Premier Collection, BW Signature Collection, SureStay by Best Western, SureStay Plus by Best Western, SureStay Studio by Best Western, SureStay Collection by Best Western and WorldHotels Collection. These properties may be located near a franchisee's MMA, creating direct competition. The FDD explicitly states that there is no mechanism for resolving conflicts that may arise between a franchisee's hotel and hotels owned, managed, or licensed by Best Western and its affiliates.
For 'Qualified Hotels,' Best Western offers some territorial protection within a defined MMA. A 'Qualified Hotel' must meet specific criteria related to dues, quality assurance scores, and adherence to Membership Agreement conditions. However, these protections vary based on color-coded categories assigned to different Best Western brands. Some brands have full MMA radius protection against others in the same category, while others have reduced or no protection. Prospective franchisees should carefully consider these competitive risks and understand the specific MMA rules and Impact Analysis rights associated with their chosen Best Western brand.
In certain limited market conditions, a Best Western branded System Hotel may have full MMA radius protection from all System Hotels in every color Category. These conditions include operating (i) in a tertiary market; (ii) with a city population of less than 15,000; and (iii) fewer than 5 hotels that are listed in Smith Travel Research in the city. If a Best Western branded System Hotel converts to a SureStay branded System Hotel, the MMA radius protection will not apply to the SureStay branded System Hotel, which will instead have any protections granted to it as a SureStay branded System Hotel.