Under what circumstances related to property ownership changes will a Best Western membership automatically terminate?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- (A) Except as provided in Article II, Section 7(B) of these Bylaws, a Membership shall automatically terminate on the date of the occurrence of any one of the following events:
- (1) The Best Western Property is leased or subleased;
- (2) A lease of the Best Western Property terminates;
- (3) If the Best Western Property is not leased, a change occurs of 50% or more of the equitable ownership of the Best Western Property within a 12-month period;
- (4) A change occurs of 50% or more of the equitable ownership of a leasehold interest within a 12-month period;
- (5) If the Best Western Property is not leased, a change occurs of 50% or more of the equitable ownership of the entity or entities owning the Best Western Property within a 12-month period;
- (6) A change occurs of 50% or more of the equitable ownership of the entity or entities leasing the Best Western Property within a 12-month period.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a Best Western membership will automatically terminate under specific circumstances related to property ownership changes. These circumstances include if the Best Western property is leased or subleased, or if the lease of the Best Western property terminates.
Additionally, if the Best Western property is not leased, a change of 50% or more of the equitable ownership of the Best Western property within a 12-month period will result in automatic termination. The same applies if a change occurs of 50% or more of the equitable ownership of a leasehold interest within a 12-month period. This also extends to changes in the ownership of the entities owning or leasing the Best Western property; a change of 50% or more in the equitable ownership of these entities within a 12-month period also triggers automatic termination.
However, Best Western does provide some exceptions to these automatic termination rules. Certain transactions, such as bona fide financing transactions, changes in the legal form of ownership without a change in control, and transfers to family members, may be exempt from these limitations, provided certain conditions are met. These conditions generally involve the transferee completing required forms, paying outstanding dues, and bringing the property up to Best Western standards within a specified timeframe.