What constitutes a prohibited transferee for a Surestay Hotel By Best Western franchise?

According to the 2025 Franchise Disclosure Document, a prohibited transferee for a Surestay Hotel By Best Western franchise is defined as a 'Competitor'. The FDD defines a 'Competitor' as any individual or entity that, at any time during the term of the agreement, whether directly or through an affiliate, owns in whole or in part, or is the licensor or franchisor of a Competing Brand, irrespective of the number of hotels owned, licensed or franchised under such Competing Brand name. A 'Competing Brand' is defined as a hotel brand or trade name that, in Surestay Hotel By Best Western's sole business judgment, competes with the Surestay Hotel By Best Western system, or any Surestay Hotel By Best Western hotel.

This definition has significant implications for potential franchisees looking to sell their Surestay Hotel By Best Western franchise. If the potential buyer falls under the definition of a 'Competitor', Surestay Hotel By Best Western can prohibit the transfer. This gives Surestay Hotel By Best Western considerable control over who can become a franchisee within their system, preventing direct competitors from gaining access or influence within the brand.

However, the definition of 'Competitor' specifically excludes individuals or entities that are merely licensees or franchisees of a competing brand owned by a third party. This means that simply being a franchisee of another hotel brand does not automatically disqualify someone from becoming a Surestay Hotel By Best Western franchisee. The key factor is whether the potential buyer owns, licenses, or franchises a competing brand themselves.

Prospective franchisees should carefully consider this definition and its implications, especially if they have existing business interests in the hotel industry. Understanding these restrictions is crucial for planning future exit strategies and ensuring the transferability of the franchise.