Under what conditions can the Best Western Board cancel a Membership?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
paid by the transferee, the transferor shall be liable for all sums due to the Corporation, including dues and charges, occurring after a transfer, until 30 days after the member services department of the Corporation is notified in writing by traceable, expedited courier, of the transfer. This provision shall not apply to liability associated with Membership transfers occurring prior to the expiration of an Extended-LengthTerm.
(E) In the event that an ambiguity exists in the application of the provisions of this section, the Board shall have the right to resolve the ambiguity in its sole and exclusive discretion.
Section 8. Cancellation of Memberships By Board Action
- (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. Within 15 days after mailing such notification, the Member may demand, by written notice, sent by traceable, expedited courier, to the membership services department of the Corporation, that a hearing be held to permit the Member to show cause why the Membership should not be cancelled. If such a request is timely made, the Board shall cause a hearing to be held and notice of the place, date and time of such hearing shall be mailed to the Member by using a traceable, expedited courier service, at least 15 days before the date set for the hearing. If a hearing is not timely requested, the Board may cancel the Membership as provided in sub-Section (B) of this Article II, Section 8. The Member shall be advised of the decision of the Board in writing.
- (D) Notwithstanding any notice and hearing rights otherwise provided by this Article II, Section 8 or the Rules and Regulations, the Board may provide a lesser notice and opportunity to be heard prior to cancellation of a Membership if it, in its sole and exclusive judgment, believes: (i) the Member exhibits a gross disregard for the Regulatory Documents, or (ii) delay in a cancellation of a Membership may cause irreparable injury to the Corporation, a Member or Members, or the public. In such event, the Board shall provide at least 15 days notice of the intent to cancel the Membership. The Member shall have an opportunity to be heard by submitting to the Board, in writing, within 10 days of the date of mailing the notice, the reasons why the cancellation should not take place.
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 authority to cancel a membership under certain conditions. These conditions include failure to pay dues, fees, rentals, charges, or assessments within the specified time frame outlined in the Bylaws or by the Corporation. Additionally, the Board can cancel a membership if a member fails to comply with the terms, conditions, or standards set forth in the Regulatory Documents, or if they fail to operate, manage, or maintain the Best Western property in a way that reflects positively on the Corporation and its members.
Cancellation of a Best Western membership requires a majority vote of the Board. Prior to cancellation, the Corporation must notify the member via traceable, expedited courier service that the Board is considering cancellation. This notification ensures the member is informed and has an opportunity to address the issues.
Specifically, Best Western may cancel a membership if a member fails to pay dues or other fees or assessments (excluding Annual Dues) within the period outlined in the Bylaws, Rules and Regulations, or Board directives, and these remain unpaid for 30 days after written notice of delinquency. The Board may also cancel a membership if a member fails to meet the standards in the Bylaws, Rules and Regulations, New Construction Guidelines, Renovation & Refurbishing Guidelines, or Board directives. Furthermore, the Board may cancel a membership if the property receives two consecutive assessment scores or Guest Rooms/Public Areas Condition Report scores below 800 points, or two such scores below 800 points within an 18-month period, or three such scores below 800 points within a 24-month period, or a single score below 600 points.
These regulations ensure that Best Western maintains its brand standards and that members meet their financial obligations. Prospective franchisees should be aware of these conditions and ensure they can comply with all requirements to avoid potential membership cancellation.