What agreement is the Rider annexed to and forms a part of for a Best Western franchise?
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 the 2025 Best Western FDD, the Rider is annexed to and forms a part of the Membership Agreement. This is highlighted in multiple excerpts, each pertaining to a specific state like North Dakota, Maryland, Washington, Illinois, New York, and Rhode Island.
These Riders are designed to modify the Membership Agreement to comply with specific state franchise laws. For example, the Rider for use in North Dakota addresses issues such as releases and liquidated damages on termination, referencing the North Dakota Franchise Investment Law. Similarly, the Rider for Maryland addresses the application of law and choice of forum, ensuring Maryland law applies to claims arising under the Maryland Franchise Registration and Disclosure Law.
The Rider for Washington State indicates that it is annexed to and forms a part of the Regulatory Documents, including the Membership Agreement, Bylaws, and Rules and Regulations. This Rider acknowledges the requirements of the Washington Franchise Investment Protection Act. The Illinois Rider addresses governing law and consent to jurisdiction, ensuring Illinois law applies to claims under the Illinois Franchise Disclosure Act.
In essence, these Riders serve to tailor the standard Best Western Membership Agreement to align with the franchise laws of specific states, providing additional protections or clarifications for franchisees operating in those regions. Prospective franchisees should carefully review the Rider applicable to their state to understand how it modifies the standard Membership Agreement.