What is the procedure for cancellation of Best Western membership if payment is not received in full?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Chapter XII
1200.0 Procedure for Cancellation of Membership
- 1200.1 A. Unless payment in full is received within the time specified or other satisfactory arrangements are made to liquidate the delinquent indebtedness contained in a notice sent to a Member pursuant to paragraph 1100.5 of Chapter XI of these Rules and Regulations, the President and Chief Executive Officer or his designee shall send to the Member by certified mail notice containing the following information:
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- Statements of amounts delinquent;
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- Nature of charges;
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- Citation of the Bylaws, Rules and Regulations, New Construction Guidelines, Renovation & Refurbishing Guidelines, or orders or directives of the Board upon which the nature, amount and delinquency of the charges are based; and
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- Notification that the Board will consider the cancellation of the Membership and that a written demand for a hearing to show cause why the Membership should not be cancelled shall be received by the President and Chief Executive Officer or his designee by certified mail within fifteen (15) days after mailing of this notification.
- B. Failure to make timely written demand for a hearing shall be deemed consent by the Member to any action taken by the Board with respect to cancellation of the Membership.
- C. If the Member makes timely written demand for a hearing, the provisions of paragraphs 1200.3 and 1200.5 of this chapter shall apply.
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Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the procedure for cancellation of membership due to non-payment involves several steps. First, if full payment is not received within the specified time or if satisfactory arrangements are not made to address the outstanding debt as indicated in a notice sent to the member, the President and Chief Executive Officer or their designee will send a certified mail notice to the member. This notice includes details such as the delinquent amounts, the nature of the charges, and references to the specific Bylaws, Rules and Regulations, New Construction Guidelines, Renovation & Refurbishing Guidelines, or Board directives that justify the charges and their delinquency. The notice also informs the member that the Board will consider canceling the membership.
Furthermore, the notice will state that the member has fifteen (15) days after the mailing date to submit a written demand for a hearing to explain why their membership should not be canceled. This demand must be sent to the President and Chief Executive Officer or their designee via certified mail. Failure to make this demand within the specified timeframe is considered consent to any cancellation actions taken by the Board.
If the member does request a hearing, the procedures outlined in paragraphs 1200.3 and 1200.5 of Chapter XII of the Rules and Regulations will apply, which likely involve further communication and the hearing itself. This process ensures that Best Western provides members with an opportunity to address payment issues and present their case before a final decision on membership cancellation is made.