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A46/100FDD 2026

Best Western International, Inc. — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

25 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
25
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
46 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
978
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 46/100 rating

Risk Score Breakdown

  1. 01MINORMinimal unit growth (4.7% YoY) suggests stagnant or contracting system momentum in competitive hotel franchise market
  2. 02MINOR25 active legal actions with 8 pending fee collection lawsuits indicate enforcement challenges and potential franchisor-franchisee relationship deterioration
  3. 03MINORNo Item 19 financial disclosures (Avg Revenue/Net Income) prevents validation of profitability claims—critical gap for $442K-$6.9M investment
  4. 04MINORUnprotected territory creates direct competition risk within system and limits competitive defensibility at property level
  5. 05MINOR5% royalty on gross rooms revenue (not net) means fees apply regardless of profitability, pressuring unit-level economics during downturns
  6. 06HIGHMember termination disputes in litigation portfolio suggest aggressive enforcement or unclear franchise agreement terms

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.