What rights are contingently-approved Best Western applicants denied before full membership is granted?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
D. The Board may act upon other Membership Applications by approving such applications subject to one or more contingencies or conditions imposed by the Board in its sole discretion. If such contingent approval is given, the Applicant shall not be entitled to Membership until the Board has received proof, satisfactory to it, that all such conditions or contingencies have been timely satisfied. Such final approval, if granted, shall be effective from the date the final approval is granted. The Board may direct that customary membership services to the Property may commence during any contingency period, upon the Applicant's agreement to timely comply with the stated conditions and pay the established fees, dues and assessments for said period and the cost of all goods or services provided by or ordered through Best Western whether or not the application is ultimately approved. However, in no event shall this commencement of customary membership services be construed as granting Membership status to the Applicant.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to the 2025 Best Western Franchise Disclosure Document, applicants who receive contingent approval are not entitled to full membership status until all conditions or contingencies set by the Board are met and the Board provides final approval. Even if Best Western allows the property to commence customary membership services during the contingency period, this does not grant the applicant full membership.
This means that while a contingently approved applicant may begin to receive some benefits typically associated with Best Western membership, they do not have the full rights and privileges of a member until all contingencies are satisfied and final approval is granted. This could include things like not being able to fully participate in brand-wide initiatives or not having voting rights within the organization.
For a prospective franchisee, this highlights the importance of understanding all conditions attached to the contingent approval and working diligently to satisfy them. It also underscores the risk that full membership is not guaranteed even after initial approval and commencement of some services. Applicants should clarify with Best Western what specific rights and services are limited during the contingency period.