What is the reference article in Best Western Bylaws regarding cancellation or termination?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 7. Cancellation or Termination; Exemptions; Automatic Transfers
- (A) Except as provided in Article II, Section 7(B) of these Bylaws, a Membership shall automatically terminate on the date of the occurrence of any one of the following events:
- (1) The Best Western Property is leased or subleased;
- (2) A lease of the Best Western Property terminates;
- (3) If the Best Western Property is not leased, a change occurs of 50% or more of the equitable ownership of the Best Western Property within a 12-month period;
- (4) A change occurs of 50% or more of the equitable ownership of a leasehold interest within a 12-month period;
- (5) If the Best Western Property is not leased, a change occurs of 50% or more of the equitable ownership of the entity or entities owning the Best Western Property within a 12-month period;
- (6) A change occurs of 50% or more of the equitable ownership of the entity or entities leasing the Best Western Property within a 12-month period.
- (7) A term or condition is not met, after the Board, having provided the Member with an opportunity for a hearing, has found grounds exist for cancellation of the Membership and the Member has been granted a conditional extension in lieu of cancellation.
- (8) A Member or Member with Conditions fails to maintain and provide proof of insurance coverage as required by the Rules and Regulations.
- (9) A term or condition is not met by a Member whose Membership Application was approved by the Board with specific requirements and time frames for compliance prior to final approval of the Membership and has been advised that failure to meet any of these requirements will be grounds for automatic cancellation.
Except for the events specified in Paragraphs (A)(7), (8) and (9) of this Article II, Section 7, a Member may request an opportunity to be heard by submitting to the Board, in writing, at least 30 days prior to the effective date of the occurrence, the reasons,
in specific detail, why the automatic termination provisions are inapplicable and the termination should not occur. The Board in its sole discretion may request the Member appear in person and provide oral testimony. The Board shall have sole discretion to determine whether an event of automatic termination will or has occurred.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, Article II, Section 7 of the Best Western Bylaws addresses the cancellation or termination of a membership. This section outlines specific events that can lead to automatic termination, such as leasing or subleasing the Best Western property, termination of a lease, or changes in the equitable ownership of the property or leasehold interest exceeding 50% within a 12-month period. Additionally, failure to meet certain terms or conditions, or failure to maintain required insurance coverage, can also result in termination.
However, the document specifies exceptions where a member may request a hearing before the Board of Directors to contest the termination, provided they submit a written request with detailed reasons at least 30 days prior to the effective date. The Board retains the sole discretion to determine whether an event of automatic termination has occurred or will occur.
Furthermore, the bylaws ensure members' rights to transfer their membership upon property purchase, continue their membership unless terminated according to established bylaws, and receive all member services until cancellation or termination. These rights are subject to certain restrictions, such as conditional extensions granted by the Board or failure to meet quality or payment standards. Understanding these provisions is crucial for prospective franchisees to be aware of the conditions under which their Best Western membership can be terminated and the procedures for appealing such decisions.