Under what circumstances can Best Western summarily terminate the approval of a contingently-approved applicant?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
1300.1 Contingently-approved applicants are subject to termination of approval, as specified by rule 1300.2, for any violation of the Rules, Bylaws or Board policies which would constitute grounds for placing a Member on probation or grounds for terminating a Membership. By way of example, without limitation, a contingently-approved Applicant is subject to termination of approval, as specified by rule 1300.2, for
- A. receipt of a single assessment score below 800 points;
- B. receipt of customer complaints, during a single six-month monitoring period, in excess of the maximum number permitted by rule 500.43; and
- C. failure to strictly and timely comply with each and every condition of approval. The Board may, as a condition of approval, impose stricter standards on contingently-approved Applicants.
- 1300.2 Where grounds for termination exist, the Board may summarily terminate approval of a contingently-approved Applicant or may impose additional or stricter conditions of approval. A contingently-approved Applicant shall have no right to
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Board may summarily terminate the approval of a contingently-approved applicant if grounds for termination exist. These grounds are defined as any violation of the Rules, Bylaws, or Board policies that would justify placing a Member on probation or terminating a Membership.
Specifically, a contingently approved applicant may face termination of approval for reasons such as receiving a single assessment score below 800 points, receiving customer complaints exceeding the maximum number permitted by rule 500.43 during a single six-month monitoring period, or failing to strictly and timely comply with each and every condition of approval. The Board has the discretion to impose stricter standards on contingently-approved Applicants as a condition of approval.
It is important to note that while the Board can summarily terminate approval or impose stricter conditions, the contingently-approved applicant has no right to a hearing. This highlights the importance of understanding and adhering to all requirements during the contingent approval phase to avoid potential termination.