Under what condition related to membership can a Best Western member be considered not in good standing?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
(A) The Board shall have the right to cancel any Membership under one or more of the following conditions.
Failure of the Board to effect cancellation when grounds therefore exist shall not be construed as a waiver of a power to cancel Membership at a subsequent time on the same or different grounds:
(1) Failure to pay dues or other fees, rentals, charges or assessments within the time set by these Bylaws or by the Corporation.
(2) Failure to comply with the terms and conditions or to meet the standards as set forth in the Regulatory Documents.
(3) Failure to operate, manage or maintain the Best Western Property in such a way as to effect credit to the Corporation and the Members.
(B) No Membership shall be cancelled under Paragraph (A) of this Article II, Section 8, except by a vote of a Majority of the Board.
(C) Prior to cancellation of a Membership pursuant to this Article II, Section 8, the Corporation shall notify the Member, by using a traceable, expedited courier service, that the Board is considering cancellation of the Membership.
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 has the right to cancel a membership under certain conditions, which would effectively mean a member is not in good standing. These conditions include failure to pay dues, fees, rentals, charges, or assessments within the specified time frame as outlined in Best Western's Bylaws or by the corporation itself. Additionally, a Best Western membership can be cancelled if a member fails to comply with the terms, conditions, or standards detailed in the Regulatory Documents. Lastly, the Board can cancel a membership if the Best Western property is not operated, managed, or maintained in a way that reflects positively on the corporation and its members.
It's important to note that the Board's failure to cancel a membership when grounds for cancellation exist does not waive their right to cancel the membership at a later time, based on the same or different grounds. Before a membership is cancelled, Best Western is required to notify the member, using a traceable, expedited courier service, that the Board is considering the cancellation of their membership. This notification ensures that the member is informed and has an opportunity to address the issues leading to the potential cancellation.
For a prospective Best Western franchisee, this means that maintaining good standing requires diligent adherence to financial obligations, operational standards, and brand reputation. Failure in any of these areas could lead to membership cancellation, highlighting the importance of understanding and complying with all requirements set forth by Best Western.