What constitutes a 'Change of Ownership Transfer' for a Surestay Hotel By Best Western franchise?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Change of Ownership Transfer" means any proposed Transfer that results in a change of Control of Franchisee, the Hotel, or the Hotel Site and is not otherwise permitted by this Agreement, all as set out in Subsection 13.2.3.
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 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 to understand, as it outlines the circumstances under which transferring ownership requires specific consent and adherence to Surestay Hotel By Best Western's procedures.
The franchise agreement outlines specific conditions that must be met before Surestay Hotel By Best Western will consent to a Change of Ownership Transfer. These conditions include the transferee submitting a Change of Ownership Application, paying the then-current application fee and initial franchise fee, and executing the then-current form of new franchise agreement. Additionally, the franchisee must not be in default of the agreement, and all amounts due to Surestay Hotel By Best Western must be paid through the closing date.
Furthermore, the franchisee must execute a voluntary termination agreement, resolve any pending legal issues related to the hotel, and ensure the transferee meets Surestay Hotel By Best Western's current business requirements for new franchisees. The transferee must also not be a Sanctioned Person or a Competitor. These stipulations ensure that any transfer of ownership maintains the integrity and standards of the Surestay Hotel By Best Western brand.
These requirements protect Surestay Hotel By Best Western by ensuring that any new owner meets their standards and obligations. For a potential franchisee, it is important to understand these conditions, as failing to meet them can prevent a transfer of ownership. Franchisees should carefully review the transfer provisions in the franchise agreement and consult with Surestay Hotel By Best Western to ensure compliance with all requirements.