Under what condition will the Best Western Board consider a Membership Application?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
The Best Western Board of Directors ("Board") will not consider the Application until such time as Best Western has received the required affiliation fee ("Affiliation Fee"), which will be held by Best Western as a good-faith deposit until such time and in such manner as further described in this Application.
In the event an impact study is required in accordance with Best Western's Bylaws, and as further described in paragraph 6 below, you understand and agree that you will be responsible for the fee established by the Board for costs associated with the impact study ("Impact Study Fee"), which must be paid before the impact study is conducted and which will be a prerequisite to your application's continued processing.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Best Western Board of Directors will consider a Membership Application once Best Western receives the required affiliation fee. This fee is held by Best Western as a good-faith deposit. Additionally, if an impact study is required, the applicant must pay the Impact Study Fee before the study is conducted, which is a prerequisite for the application's continued processing.
Payment of the affiliation fee and impact study fee does not guarantee approval, as the Board may deny an application for any reason. If the application is approved, the applicant must submit an executed Terms of Approval letter, which includes conditions of membership such as completing a Property Improvement Plan, and an executed Membership Agreement. The applicant cannot represent their property as a Best Western branded hotel until all conditions are met.
Furthermore, the Board may grant conditional approval, imposing contingencies or conditions at its discretion. Membership is not granted until the Board receives satisfactory proof that all conditions are met. Customary membership services may begin during the contingency period if the applicant agrees to comply with the conditions, pay fees, dues, and assessments, and cover the costs of goods or services provided by Best Western, regardless of final approval. However, the commencement of these services does not equate to Membership status.
In summary, a prospective Best Western franchisee should be prepared to pay the affiliation fee and any required impact study fees upfront. They should also understand that application approval is not guaranteed and may be subject to additional conditions imposed by the Board. Franchisees should also be aware of the potential for conditional approvals and the requirements for satisfying those conditions to achieve full Membership status.