factual

Who pays for the impact study when requesting to increase or decrease the unit count at a Best Western?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

  • a.

Payment for the impact study shall be by the individual making the request to increase or decrease the unit count;

Source: Item 23 — Receipts (FDD pages 108–413)

What This Means (2025 FDD)

According to the 2025 Best Western FDD, the individual requesting to increase or decrease the unit count at a Best Western property is responsible for paying for the impact study. This means that if a franchisee wants to add more rooms to their hotel or reduce the number of rooms, they will have to cover the costs associated with the impact study.

The impact study itself will only consider the impact of the specific increase or decrease requested. However, the Best Western Board of Directors has the authority to waive impact studies for unit count decreases, which could save the franchisee money in those instances.

This requirement ensures that the franchisee bears the financial responsibility for assessing the potential effects of changes to the property's unit count. It is important to note that an increase or decrease of more than 10 rooms or 10%, whichever is greater, shall be determined by reference to the most recent Membership Application & Agreement or property unit count on file with the Association, whichever is greater, and shall be a cumulative total of guest rooms increased or decreased at the Best Western Property since the effective date of this rule.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.