In which states does the 'No Waiver of Disclaimer of Reliance' provision apply to Best Western franchisees?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are additional disclosures for the Franchise Disclosure Document of Best Western International, Inc. required by various state franchise laws. Each provision of these additional disclosures will not apply unless, with respect to that provision, the jurisdictional requirements of the applicable state franchise registration and disclosure law are met independently without reference to these additional disclosures.
No Waiver of Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and franchises that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin:
No statement, questionnaire or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the 'No Waiver of Disclaimer of Reliance' provision applies to franchisees in specific states to protect their rights under state franchise laws. This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims related to franchise law, including fraud in the inducement, or disclaim reliance on statements made by Best Western or its representatives. This protection supersedes any conflicting terms in other documents.
Initially, this provision specifically applies to franchisees subject to state franchise disclosure laws in California, Hawaii, Indiana, Michigan, South Dakota, Virginia, or Wisconsin. However, the FDD also includes state addenda that expand this provision to additional states.
Specifically, the provision is extended to franchisees in Illinois, Maryland, Minnesota, New York, North Dakota, Rhode Island, and Washington. Therefore, the 'No Waiver of Disclaimer of Reliance' provision ultimately applies to Best Western franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. This ensures a broader protection of franchisee rights across these states.