Under what circumstances does a Best Western franchisee have the right to request an impact analysis?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor any of our affiliates will open, or allow to open, a System Hotel within a circular area around the Site, whose radius is measured from the center of the main entrance of the lobby and is of a length determined by the Impact Analysis Radius Chart below without affording you the right to request an impact analysis.
If the Property is within the applicable radius, you will have the right, within 15 days of the mailing of the notice of the application, to request that an impact analysis be made concerning the effect of the applicant's operations on the relevant market ("Impact Analysis").
The Impact Analysis will be conducted by an independent nationally recognized consulting firm familiar with and knowledgeable about the hospitality business, which shall not be affiliated with, in any respect, us or any of our Members. The Impact Analysis will analyze the applicant's prospect for success, the demand for the applicant's services in the relevant market and the incremental impact on existing Members within the relevant market, and provide such other information as we may request it include. For this purpose, incremental impact means the occupancy and revenue losses (expressed as a percentage) projected to result from the operation of the applicant's proposed System Hotel, less any occupancy and revenue losses projected to result to existing System Hotels in the relevant market from operation of the property covered by the application as a non- System Hotel.
To the extent an Impact Analysis is requested, we will consider the application upon the completion of the Impact Analysis. We may not approve any application unless we have:
- (a) Reviewed and analyzed any requested Impact Analysis; and
- (b) Determined that granting the application will not materially impair the ability of existing Members to compete with properties or other hospitality services operated by non-Members in the relevant market.
New Member applications may only be approved upon the favorable vote of at least five Directors of the Board. In the event that ambiguity, conflict, or inadequate data exists in the application of the rules set forth above regarding an MMA radius protection and/or an Impact Analysis, the Board shall have the right in its sole discretion to resolve the conflict or ambiguity or select appropriate data on which to rely.
Rule 7: BW Signature Collection, BW Premier Collection and SureStay System Hotels do not have MMA radius protection or the right to request an Impact Analysis; but, Best Western hotels have the protection as noted above (same color categories) and have full Impact Analysis rights.
Upon a System Hotel providing notice of cancellation of its Membership Agreement, the System Hotel forfeits its MMA and Impact Analysis rights such that we can begin efforts to replace the System Hotel in the market.
Source: Item 12 — Territory (FDD pages 77–84)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a Best Western franchisee has the right to request an impact analysis when Best Western or its affiliates plan to open a new System Hotel within a defined circular area around the franchisee's location (the "Site"). This circular area's radius is determined by the Impact Analysis Radius Chart. The franchisee has 15 days from the mailing date of the application notice to request this impact analysis.
The impact analysis is conducted by an independent, nationally recognized consulting firm with expertise in the hospitality business. This firm must be unaffiliated with Best Western or any of its members. The analysis assesses the applicant's potential for success, the demand for their services in the relevant market, and the incremental impact on existing members within that market. Incremental impact is defined as the projected occupancy and revenue losses (expressed as a percentage) resulting from the new System Hotel, minus any losses already projected from the property operating as a non-System Hotel.
Best Western will consider the application upon completion of the impact analysis. The application can only be approved if Best Western has reviewed the analysis and determined that granting the application will not materially impair the ability of existing members to compete with non-member properties or other hospitality services in the relevant market. New member applications require a favorable vote from at least five Directors of the Board. The Board has the discretion to resolve any conflicts, ambiguities, or inadequate data in applying the rules regarding MMA radius protection and impact analysis.
However, BW Signature Collection, BW Premier Collection and SureStay System Hotels do not have MMA radius protection or the right to request an Impact Analysis; but, Best Western hotels have the protection as noted above and have full Impact Analysis rights. Also, upon a System Hotel providing notice of cancellation of its Membership Agreement, the System Hotel forfeits its MMA and Impact Analysis rights such that Best Western can begin efforts to replace the System Hotel in the market.