According to the Best Western FDD, who are the franchise sellers for this offering?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to the 2025 Best Western FDD, the franchise seller can be the franchisor, Best Western International, Inc., or any person acting on behalf of Best Western. This is relevant to a franchisee because any statements made by the franchisor or its representatives during the franchise sales process are subject to state franchise laws. Several states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, have specific provisions to protect franchisees from disclaiming reliance on statements made by Best Western or its sellers.
These state laws ensure that franchisees cannot waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Best Western or anyone acting on its behalf. This protection is crucial because it prevents Best Western from using contractual language to shield itself from liability for misrepresentations made during the franchise sales process. The FDD includes state-specific addenda that address these protections, reinforcing the importance of understanding the laws of the state in which the franchise is being purchased.
The inclusion of these state addenda in the Best Western FDD highlights the varying legal requirements across different states and the importance of franchisees being aware of their rights and protections under the laws of their specific state. Prospective franchisees should carefully review these addenda and consult with legal counsel to fully understand their rights and obligations. This ensures that franchisees are well-informed and protected throughout the franchise relationship.