Does the AutoClerk agreement for Best Western allow a customer to assign their rights without consent?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3 Assignment.
Customer may not assign or delegate any or all of its rights, obligations and duties under this Agreement without the prior written consent of AutoClerk, which may be withheld in AutoClerk's sole discretion.
This Agreement will bind and inure to the benefit of a party's permitted successors and assigns.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the AutoClerk agreement does not allow a customer to assign their rights, obligations, and duties without prior written consent from AutoClerk. AutoClerk has the sole discretion to withhold this consent. This is a fairly standard clause in franchise agreements, as franchisors typically want to control who their franchisees are and ensure they meet certain qualifications.
This restriction means that a Best Western franchisee cannot simply transfer their AutoClerk agreement to another party without AutoClerk's approval. If a franchisee wants to sell their Best Western business, the buyer will need to obtain AutoClerk's consent to assume the agreement. AutoClerk can evaluate the proposed assignee's financial stability, business experience, and other factors to determine if they are a suitable party to take over the agreement.
The agreement specifies that it will be binding and inure to the benefit of a party's permitted successors and assigns. This means that if AutoClerk does consent to an assignment, the agreement will be legally enforceable by and against the new party. This provides clarity and legal certainty for all parties involved in the transaction.
Overall, this clause protects AutoClerk's interests by ensuring they have control over who is using their services and technology. For a Best Western franchisee, it means they need to plan ahead and obtain AutoClerk's consent if they ever want to transfer their rights under the agreement.