Under what circumstances can Best Western terminate the approval of a contingently-approved applicant?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- J. Provides that the insurance companies issuing such insurance shall notify Best Western in writing at least thirty (30) days prior to any cancellation, alteration or nonrenewal of the policy. Each Member and each contingently approved Applicant shall annually provide Best Western with a Certificate of Insurance, on forms provided by Best Western, evidencing a policy or policies meeting the above requirements. The Certificate of Insurance shall be provided with the contingent Applicant certification agreement or prior to or upon expiration of the current Certificate of Insurance on file with Best Western. Failure to provide the Certificate of Insurance shall result in automatic termination in accordance with the provisions of Article II, Section 7 of the Bylaws. As a condition of contingent approval, each Applicant, upon notification by Best Western that Best Western intends to contingently approve the Application, shall provide Best Western with a Certificate of Insurance, on forms provided by Best Western, evidencing a policy or policies meeting the above requirements. This requirement shall be met prior to activation of services, installation or display of any Best Western signs, or advertising or disclosure of any Best Western association. Failure to maintain the insurance coverage required by this rule shall be grounds for termination of Membership in accordance with the provisions of Article II, Section 8 of the Bylaws, immediate suspension of services and termination of contingent approval as may
be prescribed in the Rules and Regulations of Best Western.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a contingently approved applicant can have their approval terminated under specific circumstances, primarily related to insurance coverage. Best Western requires both members and contingently approved applicants to maintain and provide proof of insurance coverage.
Specifically, each member and contingently approved applicant must annually provide Best Western with a Certificate of Insurance, using Best Western's forms, that demonstrates the required insurance policies are in place. This certificate must be provided with the contingent applicant certification agreement or before the current certificate expires.
Failure to provide the Certificate of Insurance will result in automatic termination, as stated in Article II, Section 7 of the Bylaws. Furthermore, not maintaining the required insurance coverage is grounds for membership termination under Article II, Section 8 of the Bylaws, immediate suspension of services, and termination of contingent approval, as prescribed in Best Western's Rules and Regulations.