What agreement is detailed in Exhibit H of the Best Western FDD?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT H TO FDD
STATE ADDENDA TO DISCLOSURE DOCUMENT
ADDITIONAL DISCLOSURES FOR THE MULTI-STATE FRANCHISE DISCLOSURE DOCUMENT OF BEST WESTERN INTERNATIONAL, INC.
The following are additional disclosures for the Franchise Disclosure Document of Best Western International, Inc. required by various state franchise laws. Each provision of these additional disclosures will not apply unless, with respect to that provision, the jurisdictional requirements of the applicable state franchise registration and disclosure law are met independently without reference to these additional disclosures.
No Waiver of Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and franchises that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin:
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.
CALIFORNIA
- The following paragraph is added at the end of Item 3 of the Disclosure Document:
Except as disclosed above, neither we nor any person identified in Item 2 is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, 15 U.S.C.A. Section 78a et seq., suspending or expelling such person from membership in such association or exchange.
Source: Item 22 — Contracts (FDD pages 107–108)
What This Means (2025 FDD)
According to the 2025 Best Western Franchise Disclosure Document, Exhibit H contains state addenda to the disclosure document. These addenda provide additional disclosures required by various state franchise laws. These additional disclosures apply only if the jurisdictional requirements of the applicable state franchise registration and disclosure law are met independently, without relying on these additional disclosures.
Specifically, for franchisees subject to franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, no statement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Best Western or its representatives. This provision overrides any conflicting terms in other documents.
As an example, for California, Exhibit H adds a paragraph to the end of Item 3 of the Disclosure Document, clarifying that neither Best Western nor any person identified in Item 2 is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, that would suspend or expel them from membership in such association or exchange. This ensures transparency and provides additional information relevant to potential franchisees in California.