What rights are specifically denied to a contingently-approved Best Western applicant until 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 Best Western's 2025 Franchise Disclosure Document, an applicant whose membership is contingently approved by the Board is not entitled to full membership status until all conditions or contingencies are satisfied and the Board grants final approval. Even if Best Western allows the applicant to commence customary membership services during the contingency period, this does not grant the applicant full membership status. The final approval, if granted, becomes effective on the date the Board grants it.
This means that while a contingently approved applicant may be able to access some of Best Western's services and resources, they do not have the full rights and privileges of a Best Western member. This could include, for example, not having full voting rights within the organization or not being able to fully participate in certain Best Western programs or initiatives. The applicant must fulfill all requirements set by the Board to transition from contingent to full membership.
For a prospective franchisee, this highlights the importance of understanding all conditions and contingencies attached to the membership approval. It is crucial to clarify what specific rights and services are limited during the contingency period and what steps are necessary to achieve full membership status. This ensures that the applicant is fully aware of their obligations and can plan accordingly to meet the requirements for full membership within Best Western.