Under what conditions will Best Western NOT refund the $4,000 Impact Study Fee?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
d in this Item.
ITEM 5
INITIAL FEES
Impact Study Fee
New prospective Members may, by paying us an Impact Study Fee of $4,000, contribute funds to our commissioning of an impact study. All new prospective Members must complete an Application for Membership (the current form of which is attached as Exhibit I). Applications for Membership are valid for six months from the Board meeting they are originally intended for (the "Application Deadline"). If a new prospective Member's Application for Membership is presented to the Board by the Application Deadline and the Application for Membership is approved, the Impact Study Fee will be credited toward the Affiliation Fee (see below). If a new prospective Member's Application for Membership is presented to the Board by the Application Deadline and the Application for Membership is not approved, the entire Affiliation Fee (including the $4,000 Impact Study Fee) will be refunded. If a new prospective Member's Application for Membership is not presented to the Board by the Application Deadline due to the actions of the prospective Member or the Application for Membership is approved by the Board, but the prospective Member does not accept the condi
Source: Item 5 — Initial Fees (FDD pages 21–24)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the $4,000 Impact Study Fee is non-refundable under specific circumstances related to the application process. New prospective members pay this fee to contribute to Best Western's commissioning of an impact study.
The Impact Study Fee will not be refunded if the new prospective member's Application for Membership is not presented to the Board by the Application Deadline due to the prospective member's own actions. This means if the applicant delays or fails to submit the necessary paperwork on time, they forfeit the $4,000. Additionally, the fee is non-refundable if the Board approves the Application for Membership, but the prospective member does not accept the conditions of approval.
In summary, to ensure a refund of the Impact Study Fee, prospective Best Western members must ensure their application is submitted on time and be prepared to accept the conditions of approval set by the Board. Failure to meet either of these conditions will result in the $4,000 fee being non-refundable.