Who licenses the use of the trademarks and system to Surestay Hotel By Best Western franchisees?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Best Western International has licensed us to use, and to grant franchisees the right to use, the Marks and the System in a master license agreement dated as of August 29, 2016. The master license agreement provides for a term equal to the entire term of the Marks' registration and protection including any renewals or extensions thereof, unless earlier terminated in accordance with its provisions.
There are no currently effective material determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator of any state, or any court, and no pending infringement, opposition, or cancellation proceedings or material litigation, involving the principal Marks. We do not actually know of either superior prior rights or infringing uses that could materially affect your use of the Marks in any state. Other than the master license agreement we have entered into with Best Western International, described above, there are no currently effective agreements that significantly limit our rights to use or license the use of the principal Marks in a manner material to the franchise. No affidavits or renewal filings are yet due in connection with these registrations or applications.
Source: Item 13 — Trademarks (FDD pages 61–63)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, Best Western International licenses Surestay Hotel By Best Western to use the trademarks and system, and to grant franchisees the right to use them. This arrangement is formalized in a master license agreement dated August 29, 2016. The agreement's term extends for the entire duration of the trademark's registration and protection, including any renewals or extensions, unless terminated earlier according to the agreement's provisions.
This master license agreement is a critical element for prospective franchisees. It confirms that Surestay Hotel By Best Western has the legal authority to sublicense the brand's trademarks and operating system to its franchisees. Without this agreement, franchisees would not have the right to operate under the Surestay Hotel By Best Western brand. The term of the agreement, tied to the trademark's registration, offers a degree of long-term security for franchisees, provided the agreement remains in effect.
The FDD also states that there are no currently effective material determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator of any state, or any court, and no pending infringement, opposition, or cancellation proceedings or material litigation, involving the principal Marks. Surestay Hotel By Best Western does not know of either superior prior rights or infringing uses that could materially affect a franchisee's use of the Marks in any state. Other than the master license agreement with Best Western International, there are no currently effective agreements that significantly limit Surestay Hotel By Best Western's rights to use or license the use of the principal Marks in a manner material to the franchise.
It is important for potential franchisees to understand the implications of this licensing structure. While Surestay Hotel By Best Western grants the franchise, its rights are derived from Best Western International. Any issues affecting the master license agreement could potentially impact franchisees. Therefore, reviewing the terms of the master license agreement (if possible) and understanding the relationship between Surestay Hotel By Best Western and Best Western International is a crucial part of due diligence.