Can a Surestay Hotel By Best Western franchisee transfer an equity interest to an affiliate?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2.2.1 Affiliate Transfer.
You or any Equity Owner may Transfer an Equity Interest or this Agreement to an Affiliate.
- 13.2.2 Permitted Transfers That Require Notice and Consent.
We will permit you or any Equity Owner named in the Addendum as of the Effective Date (or any transferee Equity Owner we subsequently approve) to engage in the Permitted Transfers set forth below if any such Permitted Transfer does not result in a change of Control of the Franchisee, the Hotel or the Hotel Site and: (a) the proposed transferee is not a Sanctioned Person or a Competitor; (b) you give us at least sixty (60) days' advance written notice of the proposed Permitted Transfer (including the identity and contact information for any proposed transferee and any other information we may require in order to review the proposed Permitted Transfer); (c) you pay to us a nonrefundable processing fee of One Thousand Dollars ($1,000) with the Permitted Transfer request; (d) you follow our then-current procedure for processing Permitted Transfers; and (e) you execute any documents required by us for processing Permitted Transfers.
If a Permitted Transfer listed in Subsection 13.2.2 otherwise qualifies as a Permitted Transfer without notice or consent under Subsection 13.2.1, the provisions of Subsection 13.2.1 will control.
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 franchisee can transfer an equity interest to an affiliate. Specifically, the FDD states that a franchisee or any equity owner may transfer an equity interest or the franchise agreement itself to an affiliate.
However, this transfer is considered a 'Permitted Transfer That Require Notice and Consent.' This means that while the transfer is allowed, it is subject to certain conditions. The transfer must not result in a change of control of the franchisee, the hotel, or the hotel site. Additionally, the proposed transferee cannot be a Sanctioned Person or a Competitor.
To proceed with the transfer, the franchisee must provide Surestay Hotel By Best Western with at least sixty (60) days' advance written notice, including the identity and contact information of the proposed transferee and any other required information. A nonrefundable processing fee of One Thousand Dollars ($1,000) must be paid with the transfer request. The franchisee must also follow Surestay Hotel By Best Western's then-current procedure for processing permitted transfers and execute any required documents. If a transfer qualifies as a Permitted Transfer without notice or consent, those provisions will control.