Does Surestay Hotel By Best Western grant franchisees an exclusive territory?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant franchisees a license to use the System during the term of the Franchise Agreement to operate the Hotel at a specified location. If your franchise is for the right to convert an existing hotel to a System Hotel, you will already have the location for your Hotel. We will not approve relocation of the Hotel under any circumstances.
Neither we nor any of our affiliates will open, or allow to open, a hotel or motel under your Hotel's Brand (i.e., SureStay by Best Western, SureStay Plus by Best Western or SureStay Studio by Best Western) within a radius of at least .25 miles around the Hotel (the "Restricted Area").
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Our restrictions in the Restricted Area do not apply to any System Hotel under your Hotel's Brand that is, as of the effective date of the Franchise Agreement, already open, under construction or approved for development or opening. Our restrictions in the Restricted Area also do not apply to: (1) any hotel(s) or motel(s) under brands other than your Hotel's Brand and (2) any hotel(s), motel(s), or inn(s) that are part of a chain or group of four or more hotels, motels, or inns that we or our affiliates, as a result of a single transaction or group of related transactions, own, operate, acquire, lease, manage, franchise, license, or join through a merger, acquisition or marketing agreement (or otherwise), whether under their existing name or your Hotel's Brand name or any other name.
Source: Item 12 — Territory (FDD pages 60–61)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While Surestay Hotel By Best Western provides a "Restricted Area" with a radius of at least 0.25 miles around the franchisee's hotel where they will not open or allow another Surestay Hotel By Best Western-branded hotel (SureStay by Best Western, SureStay Plus by Best Western or SureStay Studio by Best Western), this is not considered an exclusive territory. Franchisees may face competition from other franchisees, outlets owned by Surestay Hotel By Best Western, or other distribution channels and competitive brands controlled by them.
Several exceptions exist within the Restricted Area. The restrictions do not apply to existing System hotels under the same brand that are already open, under construction, or approved for development as of the Franchise Agreement's effective date. Furthermore, the restrictions do not apply to hotels or motels under different brands or to chains or groups of four or more hotels, motels, or inns that Surestay Hotel By Best Western or its affiliates own, operate, acquire, lease, manage, franchise, license, or join through a merger, acquisition, or marketing agreement.
Surestay Hotel By Best Western and its affiliates retain the right to engage in any other businesses, including those in the lodging or hospitality industry, even if they compete with the franchisee's hotel. They can also use or license the System, facilities, programs, services, and personnel in other businesses and modify elements of the System. Moreover, Surestay Hotel By Best Western is not restricted from soliciting or accepting reservations from customers within the franchisee's Restricted Area through various channels like the Internet or telemarketing, without compensating the franchisee. Franchisees are also permitted to solicit reservations from customers outside their Restricted Area, subject to Surestay Hotel By Best Western's prior written approval of their advertising.
Prospective franchisees should be aware that they have no options, rights of first refusal, or similar rights to acquire additional franchises. The continuation of their territorial rights is not contingent on achieving specific sales volumes or market penetration. While Surestay Hotel By Best Western cannot alter the Restricted Area or territorial rights during the Franchise Agreement term without the franchisee's written consent, the lack of an exclusive territory and the numerous exceptions to the Restricted Area could lead to significant competition for Surestay Hotel By Best Western franchisees.