Best Western International, Inc.

The ad fund rate of 16.39% is significantly higher than typical for hospitality franchises. How is this marketing fund allocated, and what specific returns or marketing deliverables can franchisees expect?

Technology fees of $2.1 monthly are substantially lower than the typical range. What technology systems and support are included, and are there additional technology-related costs not reflected in this fee?

The franchisor has been plaintiff in 9 litigation cases. What are the primary claims, and have any resulted in judgments affecting franchisee operations or franchise agreement terms?

With 23 total litigation cases as defendant, what are the most common claims and their outcomes? Have any cases resulted in settlements affecting the franchise agreement or franchisor obligations?

The system lost 87 units over 3 years despite exclusive territories and strong contract terms. What factors contributed to this decline, and what turnaround strategies is the franchisor implementing?

Closures averaged 73 units annually over 3 years. What percentage of these closures were due to economic factors, and how many were due to franchisee non-compliance versus franchisor terminations?

The termination rate dropped dramatically from 41 units in 2022 to 5 in 2024. Does this reflect a change in franchisor enforcement practices, or are franchisees voluntarily exiting before termination?

With a total potential contract term of 1,010 years (20-year initial plus 99 ten-year renewals), under what conditions would the franchisor decline renewal, and what notice period applies?

The non-compete clause specifies 0 years and 0 miles. Does this mean franchisees can immediately compete or open similar properties after exit?

What are the specific triggers for the liquidated damages clause referenced (lesser of 36 months or remainder of term in Monthly Fees), and how frequently is this enforced?

The franchise agreement includes joint and several liability for the voting member and spouse in community property states. How does this affect personal asset protection, and are there ways to structure ownership to limit this exposure?

With 5.3% annual transfer rate, what is the approval process for franchise transfers, and what are the franchisor's requirements for new owners?

What Item 19 financial performance data does the franchisor have available, if any, regarding average unit volumes or profitability by location type or geography?

How many of the 23 litigation cases involved franchisee disputes versus third-party claims (suppliers, employees, regulators), and what percentage were resolved favorably to the franchisor?

Are there specific geographic markets or property types experiencing higher closure rates, and should prospective franchisees avoid these segments?

The renewal fee is listed as N/A. Are there renewal costs, and if so, what is the typical amount and payment structure?

What training and ongoing support does the franchisor provide given the 5.0% royalty rate, and how does this compare to competitors?

Given the unit decline and high litigation count, what is the franchisor's current financial stability, and are there concerns about potential franchisor insolvency or operational changes?

The contract terms score 95/100 (well above typical range). What specific contract provisions are especially favorable to the franchisor, and are any of these negotiable?

With exclusive territories and high contract scores, what recourse do franchisees have if the franchisor fails to deliver promised support or encroaches on their territory?