What is considered a 'Change of Ownership Transfer' for a Surestay Hotel By Best Western franchise?

According to the 2025 Surestay Hotel By Best Western Franchise Disclosure Document, a 'Change of Ownership Transfer' refers to any proposed transfer that results in a change of control of the franchisee, the hotel, or the hotel site, and that is not otherwise permitted by the franchise agreement. This definition is crucial for prospective franchisees as it outlines the circumstances under which a transfer of ownership would be subject to specific conditions and the franchisor's approval.

In essence, if a franchisee plans to transfer their business in a way that alters who controls the franchise, the hotel itself, or the location of the hotel, it is likely to be classified as a 'Change of Ownership Transfer'. This triggers a process where Surestay Hotel By Best Western has the right to assess and potentially approve or deny the transfer. The franchisor has 60 days to make a decision on the transfer.

This provision is important because Surestay Hotel By Best Western imposes several conditions that must be met before a change of ownership can occur. These conditions include the transferee submitting a Change of Ownership Application, paying the application fee and initial franchise fee, executing a new franchise agreement, ensuring that the current franchisee is not in default, paying all outstanding amounts, and meeting the franchisor's business requirements for new franchisees. Therefore, franchisees need to understand these requirements and the associated costs when considering a transfer of ownership.