factual

Under what condition will a Best Western applicant be elected to Membership?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

ant shall not be entitled to Membership until the Board has received proof, satisfactory to it, that all such conditions or contingencies have been timely satisfied. Such final approval, if granted, shall be effective from the date of close of sale or transfer. The Board may direct that customary membership services to the Property remain uninterrupted during any contingency period, upon the applicant's

agreement to timely comply with the stated conditions and pay the established fees, dues and assessments for said period and the cost of all goods or services provided by or ordered through Best Western whether or not the application is ultimately approved. However, in no event shall this continuation of customary membership services be construed as granting Membership status to the Applicant.

D. The Board may act upon other Membership Applications by approving such applications subject to one or more contingencies or conditions imposed by the Board in its sole discretion.

Source: Item 23 — Receipts (FDD pages 108–413)

What This Means (2025 FDD)

According to Best Western's 2025 Franchise Disclosure Document, the Board of Directors holds the authority to approve Membership applications, potentially subject to specific conditions. An applicant is not entitled to Membership until the Board receives satisfactory proof that all imposed conditions or contingencies have been met in a timely manner. The Board may allow customary membership services to commence during any contingency period, provided the applicant agrees to comply with the stated conditions, pay the established fees, dues, and assessments, and cover the costs of goods or services provided by or ordered through Best Western. However, the commencement of these services does not guarantee Membership status.

Best Western requires all applicants for new Membership to remit a non-refundable evaluation fee with their applications. The amount of this fee is established by the Board to cover the administrative costs of evaluating the applications. The Board will consider a Membership Application upon the satisfaction of all impact study requirements. The Board shall not approve any Membership Application for Membership unless it has reviewed and analyzed any requested impact study and determined that granting the Membership Application for a Property 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.

For a property proposed for construction, an applicant granted conditional approval may apply for extensions of time related to the conditional approval, provided construction has not commenced. Extensions may be granted in six-month increments, with a total allowance of three years from the date of conditional approval to begin construction. The applicant must submit a request at least thirty days before the expiring period, including a progress report on financing, architectural plans, zoning requirements, and construction plans, along with payment of a non-refundable extension fee determined by the Board. Failure to submit a timely request for extension will result in the denial of an extension, and the applicant may not re-apply for Membership at the same location for ninety days following the end of the extension period. Any re-application must include all required fees.

These conditions highlight the discretionary power of the Best Western Board in approving Memberships and the importance of fulfilling all requirements and conditions imposed. Prospective franchisees should be aware of these stipulations and ensure they can meet all obligations to secure Membership.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.