Under what condition is a Best Western hotel exempt from conducting business with HRS Group?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
All Best Western branded hotels in North America (each a "Hotel"; collectively, "Hotels") shall conduct business with HRS Group, subject to the terms and conditions of the Agreement, unless a Hotel's contracted commercial term is more favorable to the Hotel, in which case the Hotel's more favorable contracted commercial term(s) shall apply.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, Best Western hotels in North America must conduct business with the HRS Group under the terms of their agreement. However, a Best Western hotel is exempt from this requirement if the hotel's independently negotiated commercial terms with HRS Group are more favorable to the hotel than the standard agreement Best Western has in place. In this case, the hotel's more favorable terms will take precedence. This exemption allows individual Best Western hotels to leverage their own negotiating power to secure better deals with HRS Group if possible.
This provision benefits franchisees by allowing them to potentially increase their revenue or reduce their expenses related to bookings made through HRS Group. It also ensures that franchisees are not locked into less advantageous terms dictated by the brand-level agreement if they can negotiate better terms on their own.
However, franchisees should carefully evaluate any independently negotiated terms to ensure they are truly more favorable when considering all factors, including commission rates, payment terms, and other contractual obligations. Franchisees should also consult with Best Western to confirm that their independently negotiated terms meet the required standards for exemption.