Under what circumstances is a Best Western member liable for Best Western's attorneys' fees?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that Member breaches any obligation to Best Western, Member is liable to Best Western for all attorneys' fees, costs and expenses incurred by Best Western in connection with the breach or violation, whether or not suit is filed.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a member is liable for Best Western's attorneys' fees if the member breaches any obligation to Best Western. This means that if a Best Western franchisee violates any term of their franchise agreement or any other agreement with Best Western, they may be required to pay Best Western's legal costs associated with addressing the breach. This liability exists regardless of whether a lawsuit is formally filed.
This provision is significant for prospective franchisees because it highlights the importance of adhering to all contractual obligations with Best Western. Even minor breaches could potentially lead to substantial financial burdens if Best Western chooses to pursue legal action. Franchisees should ensure they fully understand their obligations under the franchise agreement and related documents to minimize the risk of such breaches.
Many franchise agreements contain clauses regarding the payment of attorney's fees in the event of a breach, so this is not unusual. However, franchisees should be aware of the scope of their potential liability and take steps to ensure compliance with all contractual terms. Consulting with an attorney to review the franchise agreement before signing can help a franchisee understand their obligations and potential risks.