factual

How does Best Western amend the 'Summary' section of Item 17(d) regarding termination by the member?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the "Summary" section of Item 17(h), entitled "Cause" defined – non-curable defaults, is amended by adding the following:

Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the membership agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.

Source: Item 23 — Receipts (FDD pages 108–413)

What This Means (2025 FDD)

According to Best Western's 2025 Franchise Disclosure Document, the 'Summary' section of Item 17(h), entitled "Cause" defined – non-curable defaults, is amended for franchises in Virginia. This amendment acknowledges the restrictions outlined in Section 13.1-564 of the Virginia Retail Franchising Act.

Specifically, the amendment adds a statement clarifying that it is unlawful for Best Western to cancel a franchise without reasonable cause, as defined by the Virginia Retail Franchising Act or Virginia laws. It further states that if any grounds for default or termination in the membership agreement do not constitute "reasonable cause" under Virginia law, that particular provision may not be enforceable.

In practical terms, this means that Best Western franchisees in Virginia have additional protection against termination without reasonable cause. The amendment ensures that the franchise agreement aligns with Virginia law, which may provide a more favorable interpretation of what constitutes justifiable grounds for termination. This could be a significant benefit for franchisees in Virginia, as it limits Best Western's ability to terminate the agreement based on potentially ambiguous or unfair reasons.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.