What is Best Western prohibited from doing regarding financial performance representations?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not make any representations about a Member's future financial performance or the past financial performance of company-owned or Member-owned outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the licensor's management by contacting Jay Pricher, General Counsel and Corporate Secretary of Best Western International, Inc., at 6201 N. 24th Parkway, Phoenix, AZ 85016, 602-957-4200, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — Financial Performance Representations (FDD page 93)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, Best Western does not make any representations about a Member's future financial performance or the past financial performance of company-owned or Member-owned outlets. Furthermore, Best Western does not authorize its employees or representatives to make any such representations either orally or in writing.
However, if a prospective franchisee is purchasing an existing outlet, Best Western may provide the actual records of that outlet. The FDD stipulates that if a prospective franchisee receives any other financial performance information or projections of their future income, they should report it to Best Western's management, the Federal Trade Commission, and the appropriate state regulatory agencies. This is to ensure that franchisees are not misled by unauthorized financial representations.
This policy is in place to protect both Best Western and potential franchisees. By not making its own financial performance representations, Best Western avoids potential liability if an outlet does not perform as expected. At the same time, it encourages franchisees to conduct their own due diligence and rely on verified information, such as the records of an existing outlet, rather than unverified projections. This approach aligns with standard franchise industry practices, where franchisors typically provide limited financial information and advise franchisees to seek independent financial advice.