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Under what circumstances is the Rider to the Membership Agreement signed for a Best Western franchise?

Best_Western Franchise · 2025 FDD

Answer from 2025 FDD Document

er term of any document executed in connection with the franchise.

IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Effective Date stated in the Membership Agreement.

MEMBER: LICENSOR: [INSERT MEMBER ENTITY], a [INSERT Best Western International, Inc., an Arizona TYPE OF ENTITY] corporation Executed on: Executed on:

RIDER TO THE BEST WESTERN INTERNATIONAL, INC. MEMBERSHIP AGREEMENT FOR USE IN NORTH DAKOTA

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").

    1. 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. This Rider is being signed because (a) Member is a resident of North Dakota and the Property will be located in North Dakota, and/or (b) the offer or sale of the license for the Property that Member will operate under the Membership Agreement was made in the State of North Dakota.
    1. Releases. The following language is added as a new Section X of the Membership Agreement:

Any general release shall not apply to the extent prohibited by law with respect to claims arising under the North Dakota Franchise Investment Law.

  1. Liquidated Damages on Termination. The following language is added to the end of Section F.5 of the Membership Agreement:

The Commissioner has determined termination or liquidated damages to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. However, Best Western and Member agree to enforce these provisions to the extent the law allows.

  1. Governing Law/Consent to Jurisdiction. The following language is added to the end of Section Q of the Membership Agreement:

Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to this Agreement. In addition, to the extent required by applicable law, Member may bring an action in North Dakota.

  1. No Waiver of Disclaimer of Reliance. 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.

IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Effective Date stated in the Membership Agreement.

MEMBER: LICENSOR: [INSERT MEMBER ENTITY], a [INSERT Best Western International, Inc., an Arizona TYPE OF ENTITY] nonprofit corporation Executed on: Executed on:

**RIDER TO THE BEST WESTERN INTERNATIONAL, INC.

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

What This Means (2025 FDD)

According to Best Western's 2025 Franchise Disclosure Document, the Rider to the Membership Agreement is signed under specific circumstances that vary by state. For instance, a Rider for use in North Dakota is signed if the member is a resident of North Dakota, and the property will be located there, or if the offer or sale of the license was made in North Dakota. Similarly, a Rider for use in Maryland is required if the member is a resident of Maryland, the franchised property will be operated in Maryland, or the offer to sell or buy the franchise was made or accepted in Maryland.

The purpose of these Riders is to ensure compliance with state-specific franchise laws and regulations. They often include provisions that modify the standard Membership Agreement to protect the franchisee's rights under state law. For example, the North Dakota Rider addresses issues such as releases and liquidated damages on termination, while the Maryland Rider clarifies the application of law and choice of forum for claims arising under Maryland franchise law.

These Riders also address issues such as waivers and disclaimers, ensuring that franchisees do not inadvertently waive rights or disclaim reliance on statements made by Best Western. The Illinois Rider is signed if the offer to sell or buy the license was made in Illinois, accepted in Illinois, the member is domiciled in Illinois, or the licensed property will be located in Illinois. These state-specific Riders are critical for Best Western to remain compliant with franchise laws across different jurisdictions and to protect the rights of its franchisees.

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.