How does Surestay Hotel By Best Western define a 'Competing Brand'?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
ement, all as set out in Subsection 13.2.3.
- "Competing Brand" means a hotel brand or trade name that, in our sole business judgment, competes with the System, or any System Hotel.
- "Competitor" means any individual or entity that, at any time during the Term, 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.
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 '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 system or any Surestay Hotel By Best Western hotel within the system. This definition grants Surestay Hotel By Best Western significant discretion in determining what constitutes a competing brand.
This definition is important for prospective franchisees because it can impact their ability to invest in or operate other hotel brands. If Surestay Hotel By Best Western deems another brand to be competitive, franchisees may face restrictions or be in violation of their franchise agreement if they have any association with the competing brand.
The FDD also defines a 'Competitor' as any individual or entity that, at any time during the term, 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. However, a Competitor does not include an individual or entity that is a licensee or franchisee of a Competing Brand owned by a third party. This distinction clarifies that being a franchisee of a competing brand does not automatically classify someone as a 'Competitor' to Surestay Hotel By Best Western.