factual

What must a Best Western Property do if it falls below a AAA/CAA 2-Diamond rating?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

ced in Exhibit B (the "Brand Standards").

    1. Best Western Properties are required to meet the Descriptor Program's Design Guidelines by February 1, 2014, or earlier if required by a Property Improvement Plan ("PIP") deadline.
    1. Best Western Plus Properties are required to meet the Descriptor Program's Design Guidelines within three years of activation on the reservation system as Best Western
  • Plus (e.g., if activated on February 1, 2011, the deadline is February 1, 2014), or earlier if required by a PIP deadline.

    1. Best Western Premier properties shall comply with the Design Guidelines at all times.
    1. AAA/CAA ratings no longer apply to the Descriptor Program (i.e., the assignment of descriptors).
    1. Any Property may apply for the "Best Western Plus" or "Best Western Premier" descriptor at any time by requesting a design review and by meeting the requirements of the respective Design Guidelines and Brand Standards.
    1. Every Best Western Property must maintain at least a AAA/CAA 2-Diamond rating. If a Property falls below a AAA/CAA 2-Diamond rating, or fails a AAA/CAA assessment, that Property must request a design review and complete any resulting PIP within six (6) months.
    1. Properties that request a design review will be required to pay a cost-recovery fee for the design review, which is currently estimated to be $1,900 and may increase in the future as costs rise. Such Properties will be assessed using the Design Guidelines for the requested descriptor.

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

What This Means (2025 FDD)

According to Best Western's 2025 Franchise Disclosure Document, every Best Western property must maintain at least a AAA/CAA 2-Diamond rating. If a property falls below this rating, or fails a AAA/CAA assessment, the property must request a design review and complete any resulting Property Improvement Plan (PIP) within six months.

Following a drop below the required rating, the Best Western property will need to pay a cost-recovery fee for the design review. The FDD estimates this fee to be $1,900, but notes that it may increase in the future. The property will then be assessed using the Design Guidelines for the descriptor being requested. If the property complies with the applicable Design Guidelines, it will be assigned the appropriate descriptor.

If the Best Western property does not comply with the design guidelines, it will receive a PIP. The property then has one year to complete the PIP, as determined by a subsequent design review. If the property successfully completes the PIP within the allotted time, it will be assigned the applicable descriptor. The franchisee can appeal a Descriptor Program PIP to the Best Western Board of Directors, where a waiver requires an affirmative vote of five Board Directors. An extension also requires an affirmative vote of five Board Directors, and can be granted for no more than six months, although extensions up to two years may be granted if the property maintains a high Medallia/GSS Overall Satisfaction score.

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.