Under what circumstances can the Best Western agreement be terminated due to a member's default?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
rvice marks, domain names, and other identifying marks, words, letters, designs, names, or symbols as set forth from time to time in the Brand Identity Manual (collectively "Best Western Identifying Marks").
E. Resignation, Cancellation or Termination of Agreement
This Agreement shall terminate: (1) upon sale or lease of the Property, or transfer of control of the Property, as more fully set forth in the Bylaws; or (2) upon Member's default of any obligation to Best Western, as more fully set forth in the Bylaws, Rules and Regulations, and Regulatory Documents, to include, for the avoidance of doubt and without limitation, Member's failure to make timely payment of any fees, dues, assessments, or charges owed Best Western, or Member's failure to comply with all applicable laws; or (3) upon Member's resignation from the Membership.
F. Rights and Duties Upon Resignation, Cancellation or Termination of Agreement/License
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- The license provided hereunder shall terminate immediately upon resignation of Member from the Membership or cancellation or termination of this Agreement. Within fifteen (15) days of resignation, cancellation or termination of the Agreement, the Property and Member shall cease use of and remove from public view all Best Western Identifying Marks (e.g. signs and logo'd items) and transfer to Best Western any domains containing any Best Western Identifying Marks (including, but not limited to, any domain names containing "best," "western," "bw," or any combination thereof).
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the agreement can be terminated if a member defaults on any obligation to Best Western. This includes failing to make timely payments of fees, dues, assessments, or charges owed to Best Western, or failing to comply with all applicable laws. The specifics of what constitutes a default are detailed further in Best Western's Bylaws, Rules and Regulations, and Regulatory Documents, which are incorporated by reference into the agreement.
When a member defaults, the Best Western Board of Directors has the option to impose additional conditions to the membership instead of immediate termination. These conditions could include stricter quality assurance requirements, additional design requirements, or restrictions on certain rights or services. This provides Best Western with some flexibility in addressing defaults without necessarily resorting to termination.
It is important to note that Best Western also has the right to pursue any legal or equitable remedy for breaches of the agreement or any matter arising from the member's affiliation. These remedies are cumulative, meaning Best Western isn't limited to a single course of action. Additionally, Best Western's acceptance of payments after a default doesn't waive their rights against the member.
Furthermore, membership can be canceled or terminated if its continuation is contrary to the interests of Best Western, its affiliates, subsidiaries, members, or the public image and reputation of the brand. This includes offensive, inappropriate, or discriminatory conduct by owners, lessees, voting members, or management staff. Prospective franchisees should carefully review Best Western's Bylaws, Rules and Regulations, and Regulatory Documents to fully understand what constitutes a default and the potential consequences.