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№ 01Buying & Selling a Business · Franchise Resale · Ontario

Buying a Best Western franchise

Best Western is structured differently from most hotel brands on this list — it operates as a nonprofit organization owned by its own member hotels rather than an outside investor-owned licensor, so acquiring an existing Best Western runs through a Membership Application and Board evaluation rather than a conventional royalty-based franchise agreement. That distinction matters for timing: the review sits with a member-governance body rather than a corporate franchising desk, so the board's own meeting schedule can shape how quickly a file moves.

№ 01.1The Resale, End to End

From offer to ownership

Best Western resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.

Getting approved

01

Conditional offer on the property & the membership

The offer covers the real estate and the Best Western membership together, conditioned on the Membership Application being approved.

2–4 weeks
02

Membership Application & Board evaluation

The incoming operator and the property are reviewed through Best Western's member-governance process rather than a corporate franchisor's internal approval desk — a distinction worth planning around, since board review cycles don't always run on a fixed weekly clock.

4–8 weeks, board-cycle dependent
03

Disclosure considerations

A franchise disclosure document may still be required for this resale — Ontario courts read the resale-disclosure exemption narrowly, so involvement by the brand's governing body in vetting the buyer can trigger it even where the deal is framed as private.

assessed early

Getting to closing

04

Real property, financing & premises diligence

Title, survey, mortgage financing and environmental review for the real property proceed alongside the membership review; where the property carries a licensed lounge or restaurant, an AGCO transfer runs on its own clock.

4–8 weeks, in parallel
05

Membership agreement & orientation

The incoming owner signs the membership documentation and typically completes orientation on brand standards and reservation systems.

negotiated alongside board approval
06

Closing

Real property, business assets, and the membership documentation close together, with any board-flagged standards items confirmed before or shortly after the date.

1 day, plus a short tail if items are pending
Timelines vary by franchisor approval speedWe track every deadline so nothing lapses.
№ 01.2About the System

About the Best Western system

Best Western hotels have operated in Canada since Canadian hotel owners first joined the system in 1964; the brand runs as a nonprofit owned by its franchisee/member hotels, and current Canadian franchise-cost coverage confirms an active, ongoing recruitment process for new Canadian properties.

Best Western operates numerous hotels across Ontario, including major markets such as Toronto and Ottawa.

Best Western uses a membership/franchise hybrid model (a Membership Application with Board evaluation) rather than a conventional franchise agreement — worth flagging to clients comparing it against other hotel brands on this list.

№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in a Best Western resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.

QuestionAsset purchaseShare purchase
What you buyThe real property (if included), the hotel's operating assets, and the benefit of Best Western membership, subject to Board approval.The shares of the corporation holding the property and the membership — everything it owns and owes.
The membership modelA Membership Application reviewed by the Board — not a conventional royalty-based licence agreement — so ongoing costs run more like member dues and assessments than a franchise royalty.The membership itself stays with the corporation, but the Board is notified of the ownership change and must approve it.
Governance & timingApproval sits with a member-elected Board rather than a corporate franchising department, so the review can move on the Board's own meeting cadence.The same governance process applies regardless of how the transaction is structured.
Real propertyTitle, financing, survey, and environmental due diligence proceed as a standard commercial real estate closing.The property stays titled in the corporation's name — diligence still confirms what the company actually holds.
Staff (ESA)Employment Standards Act continuity rules typically apply to how hotel staff carry over.Employment generally continues uninterrupted — the employer doesn't change.
Tax angleBuyer generally gets a stepped-up cost base on the real property and business assets purchased; HST self-assessment applies to the real property transfer.Seller may access the lifetime capital gains exemption on qualifying shares; the property's cost base carries over.
What you buy
Asset sale

The real property (if included), the hotel's operating assets, and the benefit of Best Western membership, subject to Board approval.

The membership model
Asset sale

A Membership Application reviewed by the Board — not a conventional royalty-based licence agreement — so ongoing costs run more like member dues and assessments than a franchise royalty.

Governance & timing
Asset sale

Approval sits with a member-elected Board rather than a corporate franchising department, so the review can move on the Board's own meeting cadence.

Real property
Asset sale

Title, financing, survey, and environmental due diligence proceed as a standard commercial real estate closing.

Staff (ESA)
Asset sale

Employment Standards Act continuity rules typically apply to how hotel staff carry over.

Tax angle
Asset sale

Buyer generally gets a stepped-up cost base on the real property and business assets purchased; HST self-assessment applies to the real property transfer.

We tell you which structure fits — before you sign anything.

№ 01.5Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Franchisor transfer/application fees, landlord consent costs, and a broker's success fee if the deal was listed — all confirmed once we see your agreement.
Most deals start here

An owner-run business

A single, already-flagged Best Western property changing hands, with the real estate and membership moving together through a single Board review cycle.

Start my file
A bit more involved

A larger or more complex deal

A deal where the Board's meeting schedule runs against a tight closing date, an existing mortgage, a licensed lounge, or a buyer acquiring more than one property at once.

Book a consultation

Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.6Before You Ask

Common questions

Why does Best Western use a membership model instead of a standard franchise agreement?

Best Western operates as a nonprofit owned by its own member hotels rather than an outside investor-owned licensor. A buyer joins through a Membership Application evaluated by the Board, and ongoing costs run more like member dues than a conventional royalty — a genuinely different structure from most other hotel brands.

How does the Board evaluation affect how long a resale takes?

Because approval sits with a member-governance board rather than a corporate franchising desk, the review can move on the Board's own meeting cadence rather than a fixed internal turnaround time. We build the closing timeline around that reality rather than assuming a standard franchisor's pace.

Do I actually own a 'licence' the way I would with Comfort Inn or Days Inn?

Not in the same sense. What you hold is a membership in the Best Western organization, documented differently from a conventional royalty-based franchise agreement — we walk through exactly what that means for your specific transaction before you sign anything.

Does the property need a liquor licence to operate as a Best Western?

No — a licensed lounge or restaurant isn't a membership requirement. Where one exists, an AGCO transfer runs alongside the real estate and membership approvals; where it doesn't, that step simply doesn't apply to your deal.

Best Western runs as a member-owned system rather than a conventional franchisor — does that change how a resale gets approved?

Yes, in form if not in substance — instead of a standard franchise agreement, an incoming owner typically completes a Membership Application reviewed by the brand's Board, but the practical effect is similar: the property and buyer still need to clear that review, alongside the usual real estate and financing steps, before the transfer closes.

Related

Where we close franchise resale deals

Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Best Western or its franchisor.

Ready to begin?

Tell us about your Best Western resale — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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