Under what circumstances is the Rider to the Best Western Membership Agreement used in Illinois?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
executed and delivered this Rider effective on the Effective Date stated in the Membership Agreement.
MEMBER: LICENSOR: [INSERT MEMBER ENTITY], a [INSERT TYPE OF ENTITY] Best Western International, Inc., an Arizona corporation Executed on: Executed on:
RIDER TO THE BEST WESTERN INTERNATIONAL, INC. MEMBERSHIP AGREEMENT FOR USE IN ILLINOIS
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").
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- 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) the offer to sell or buy the license for the Property was made in the State of Illinois, and/or (b) the offer to sell or buy the license for the Property was made outside of the State of Illinois and accepted in the State of Illinois, and/or (c) Member is domiciled in the State of Illinois, and/or (d) the licensed Property will be located in the State of Illinois.
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- Governing Law/Consent to Jurisdiction. The following language is added to the end of Section Q of the Membership Agreement:
However, Illinois law will apply to claims arising under the Illinois Franchise Disclosure Act and the parties submit to the jurisdiction and venue of the state and federal courts of competent jurisdiction in Illinois for claims arising under the Illinois Franchise Disclosure Act
- Limitation of Claims. The following language is added as a new Section X of the Membership Agreement:
Nothing in this Agreement shall shorten any period within which Member may bring a claim under Section 705/27 of the Illinois Franchise Disclosure Act or constitute a condition, stipulation, or provision purporting to bind any person acquiring any membership to waive compliance with any provision of the Illinois Franchise Disclosure Act of 1987 or any other Illinois law (as long as the jurisdictional requirements of that Illinois law are met).
- Waivers Void.
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 Best Western Membership Agreement for use in Illinois is implemented under specific conditions related to the franchise offer, sale, and location. This rider is added to the standard Membership Agreement to address specific legal and jurisdictional considerations within Illinois.
The Rider is signed if (a) the offer to sell or buy the license for the property was made in Illinois, (b) the offer was made outside Illinois but accepted within the state, (c) the member is domiciled in Illinois, or (d) the licensed property will be located in Illinois. These conditions ensure that Illinois franchise laws are appropriately considered and applied to the membership agreement.
Furthermore, the Rider includes specific provisions to ensure compliance with the Illinois Franchise Disclosure Act. It stipulates that Illinois law will govern claims arising under this Act and that parties must submit to the jurisdiction and venue of Illinois state and federal courts for such claims. Additionally, the Rider includes clauses that prevent any provisions in the agreement from shortening the claim period under the Illinois Franchise Disclosure Act or waiving compliance with any Illinois law, provided the jurisdictional requirements are met. This offers additional protection to Best Western members operating in Illinois.