Under what condition can a Best Western property apply for an exemption from the Compliance Rules?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Any Property which has received a statement in writing from AAA/CAA that it is not eligible for consideration as a AAA/CAA designated Diamond-rated hotel property may apply for, and upon submission of the AAA/CAA statement of ineligibility to BWI may receive, an exemption from the Compliance Rules described below ("Exemption"). By way of example, a Property which has received a statement from AAA/CAA that the Property is ineligible for consideration because it is a "Historic Property", listed on the National Register of Historic Places, may apply to BWI for and may receive an exemption from the Compliance Rules. Exemptions will not be granted for any failure of a Property to obtain AAA/CAA approval by reason of a failure to maintain quality standards or the like.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a Best Western property can apply for an exemption from Compliance Rules if it receives a written statement from AAA/CAA indicating it is ineligible for consideration as a AAA/CAA designated Diamond-rated hotel. Upon submitting this statement to Best Western International (BWI), the property may receive an exemption.
For example, the document specifies that a property deemed ineligible by AAA/CAA due to its status as a "Historic Property" listed on the National Register of Historic Places can apply for this exemption. However, Best Western clarifies that exemptions will not be granted if the failure to obtain AAA/CAA approval is due to the property's failure to maintain quality standards.
This exemption process allows certain properties that cannot meet AAA/CAA requirements for reasons outside their control (such as historical status) to still operate as Best Western franchises, provided they meet Best Western's other standards. This is an important consideration for prospective franchisees who may own or plan to operate a property with unique characteristics that could affect its eligibility for AAA/CAA ratings.