What agreement is the Rider annexed to and forms a part of for Best Western?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement.
MEMBER: LICENSOR: [INSERT MEMBER ENTITY], a [INSERT TYPE OF ENTITY] Best Western International, Inc., an Arizona corporation Executed on: Executed on:
RIDER TO THE BEST WESTERN INTERNATIONAL, INC. MEMBERSHIP AGREEMENT FOR USE IN ILLINOIS
This Rider (the "Rider") is made and entered into as of the Effective Date as stated in the Membership Agreement (defined below), by and between Best Western International, Inc., an Arizona nonprofit corporation with its principal business address at 6201 N. 24th Parkway, Phoenix, Arizona 85016 ("we," "us" "our," or "Licensor"), and ___________________________________ ("you," "your," or "Member").
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- Background. Licensor and Member are parties to that certain Membership Agreement that has been signed at the same time as the signing of this Rider (the "Membership Agreement"). This Rider is annexed to and forms a part of the Membership Agreement.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Rider is annexed to and forms a part of the Membership Agreement. This is highlighted in multiple state-specific riders included in the document, such as those for North Dakota, Washington, Minnesota, New York, Maryland, and Illinois.
These riders are designed to modify the Membership Agreement to comply with specific state franchise laws. For example, the North Dakota Rider addresses issues like releases and liquidated damages on termination, while the Washington Rider refers to modifications of regulatory documents including the Membership Agreement, Bylaws, and Rules and Regulations, to comply with the Washington Franchise Investment Protection Act. The Minnesota Rider includes stipulations about protecting the member's right to use Best Western Identifying Marks and indemnification.
For a prospective Best Western franchisee, this means that the standard Membership Agreement is subject to change based on the state in which the franchise will operate. It is important to carefully review the Rider applicable to their state to understand any modifications to the standard agreement. These modifications can cover a range of legal and operational aspects, ensuring compliance with local regulations and offering specific protections or limitations.
Therefore, franchisees should pay close attention to the specific terms outlined in the Rider for their state, as these terms will take precedence over conflicting provisions in the standard Membership Agreement. This ensures that both Best Western and the franchisee are operating in accordance with the applicable state laws and regulations.