What condition allows for the disclosure of the confidential settlement agreements in the Best Western cases mentioned?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
On March 1, 2019, the court granted summary judgment in our favor and dismissed all of the Former Applicant's claims. On April 19, 2019, the parties settled the case with mutual releases of all claims per a confidential settlement agreement, the disclosure of which is only allowed if required by applicable law or court order.
Source: Item 2 — Business Experience (FDD pages 12–21)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the disclosure of confidential settlement agreements in the legal cases involving Best Western is only allowed if required by applicable law or court order. This condition is consistently mentioned across multiple case descriptions within Item 2 of the FDD.
This means that Best Western aims to keep the details of its legal settlements private unless a legal mandate compels them to reveal the information. For a potential franchisee, this indicates that Best Western values confidentiality in its legal dealings. However, it also means that franchisees may not have access to the details of past settlements to understand the full scope of potential liabilities or disputes.
It is important to note that while the FDD mentions the existence of these confidential settlements, it does not provide details on the specific terms or circumstances of each case beyond what is already disclosed. Prospective franchisees should consider asking Best Western about the types of disputes that have led to settlements and whether there are any ongoing legal issues that could affect the franchise system.