Under what conditions can Best Western terminate a franchise agreement before its expiration?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
However, with respect to memberships governed by Minnesota law, Best Western will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that Member be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the membership agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
RCW 19.100.180 may supersede this Agreement in Member's relationship with Best Western including the areas of termination and renewal of your license. There may also be court decisions which may supersede this Agreement in Member's relationship with Best Western including the areas of termination and renewal of Member's license.
The Commissioner has determined termination or liquidated damages to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. However, Best Western and Member agree to enforce these provisions to the extent the law allows.
FEES ARE SUBJECT TO CHANGE BY THE LICENSOR WITHOUT LIMITATION. YOUR INABILITY TO PAY THOSE FEES MAY RESULT IN TERMINATION OF YOUR LICENSE AND LOSS OF YOUR INVESTMENT.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the conditions under which Best Western can terminate a franchise agreement before its expiration are governed by various state laws and the terms outlined in the membership agreement. For instance, Minnesota law requires Best Western to provide a 90-day notice of termination, with 60 days to cure, except in certain specified cases. Similarly, a 180-day notice is required for non-renewal of the Membership Agreement in Minnesota. These stipulations ensure that franchisees in Minnesota have sufficient time to address any issues before termination or non-renewal occurs.
In Virginia, the Retail Franchising Act stipulates that Best Western needs reasonable cause to cancel a franchise. If any grounds for default or termination stated in the membership agreement do not constitute "reasonable cause" under Virginia law, that provision may not be enforceable. This protects franchisees from arbitrary or unfair terminations. Washington's Franchise Investment Protection Act also plays a role, potentially superseding the agreement in areas of termination and renewal, and court decisions may further influence these aspects of the member's relationship with Best Western.
Furthermore, Best Western's ability to enforce certain provisions, such as those related to litigation venues or waivers of rights, is limited by state laws like those in North Dakota. The North Dakota Franchise Investment Law deems termination or liquidated damages as potentially unfair, unjust, and inequitable, and the agreement is enforced only to the extent the law allows. In New York, the FDD highlights that the inability to pay fees may result in the termination of the license and loss of investment, indicating that financial stability is a critical factor in maintaining the franchise agreement. These state-specific regulations collectively shape the landscape of franchise terminations, ensuring some level of franchisee protection against potentially overreaching actions by Best Western.