Is Best Western providing any representations about a Member's future financial performance?
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 the 2025 Best Western FDD, Best Western does not make any representations about a Member's future financial performance, nor do they make representations about the past financial performance of company-owned or Member-owned outlets. Best Western also does not authorize employees or representatives to make 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 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 any financial information received is vetted and accurate.
This policy is typical in franchising, as franchisors generally avoid making income claims unless they have a reasonable basis and include the information in Item 19 of the FDD. This policy protects both the franchisor and the franchisee from unrealistic expectations and potential legal issues. It is important for potential franchisees to rely on their own research and due diligence, rather than unauthorized claims, when evaluating a franchise opportunity.