Under what conditions can a Best Western membership be transferred to another designated property?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Membership is transferred to another designated Property in accordance with Article II, Section 4 of these Bylaws, the Member Market Area will be determined by the property type of the newly designated Property regardless of the Member Market Area of the previous Best Western Property.
The radius of a Member Market Area shall be measured by a global positioning system selected by the Board. Market category criteria will be as determined by Smith Travel Research or such other means as selected by the Board, subject to final approval by the Board. The Board, by an affirmative vote of five Directors, may adjust the Member Market Area radius for each property type and market category based upon an analysis of data from additional impact studies. Such adjustments of radii shall occur: (i) not more frequently than every five years; and (ii) only upon a prior favorable vote and recommendation of two-thirds (2/3) or more of the votes cast by Governors present at any Governors Conference.
(b) The Member Market Area radius may be altered by a Board policy that fairly and equitably accounts for obstacles or barriers (such as mountains, lakes and major airports) that materially affect the travel time or travel distance between a Member and an Applicant and thereby reduce the likelihood that the Applicant's Property will have an incremental
The impact study shall be conducted by an independent nationally recognized consulting firm familiar with and knowledgeable about the hospitality business, which shall not be affiliated with, in any respect, the Corporation or any of its Members. The impact study shall analyze the Applicant's prospect for success, the demand for the Applicant's services in the relevant market and the incremental impact on existing Members within the relevant market, and provide such other information as the Board may request it include. For this purpose, incremental impact means the occupancy and revenue losses (expressed as a percentage) projected to result from the operation of the Property covered by a Membership Application as a Best Western Property, less any occupancy and revenue losses projected to result to existing Members in the relevant market from operation of the Property covered by the Membership Application as a non-Best Western Property.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a membership can be transferred to another designated property under specific conditions outlined in Article II, Section 4 of the Bylaws. If a membership is transferred to another designated property, the Member Market Area will be determined by the property type of the newly designated property, regardless of the previous Best Western property's market area. The radius of this Member Market Area is measured using a global positioning system selected by the Board.
Additionally, the Board may adjust the Member Market Area radius for each property type and market category based on data analysis from impact studies. These adjustments can occur no more frequently than every five years and require a favorable vote and recommendation from two-thirds or more of the Governors present at any Governors Conference. The Member Market Area radius may also be altered by a Board policy that accounts for obstacles or barriers that materially affect travel time or distance between a Member and an Applicant, reducing the likelihood of incremental impact on existing members.
An impact study, conducted by an independent consulting firm familiar with the hospitality business, analyzes the Applicant's success prospects, market demand, and incremental impact on existing members. Incremental impact refers to occupancy and revenue losses projected from the operation of the new Best Western property, compared to losses if the property were not a Best Western. This ensures that the transfer of membership considers the potential effects on the existing network of Best Western properties.