factual

What is the process for a Best Western member to request an impact analysis before a new membership approval?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

Each Member Of Best Western Shall Have The Following Rights:

    1. The right to request an impact analysis (including an independent analysis of market effect) prior to the approval of a new Membership.

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

What This Means (2025 FDD)

According to Best Western's 2025 Franchise Disclosure Document, members have the right to request an impact analysis before a new membership is approved. This is outlined in the Member's Bill of Rights. The impact analysis includes an independent analysis of the potential market effects a new Best Western property could have on existing locations.

Best Western's Board of Directors reviews membership applications, considering any requested impact studies to ensure that new properties will not significantly impair the ability of existing members to compete. This review process is detailed in Article II, Section 2 of the bylaws. The impact study itself is conducted by an independent, nationally recognized consulting firm with expertise in the hospitality business. This firm assesses the applicant's potential for success, the demand for their services, and the incremental impact on existing Best Western members within the relevant market.

The impact study analyzes the potential occupancy and revenue losses that existing Best Western properties might experience due to the new property, compared to the losses they might face if the new property were not affiliated with Best Western. The Board may also consult with Governors or Member Advisory Committees before adopting any policies related to market impact. This process ensures that the interests of current Best Western members are considered when evaluating new membership applications.

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.