Are the additional disclosures in the Bw Premier Collection Franchise Disclosure Document applicable to all franchisees, or only those meeting specific jurisdictional requirements?
Bw_Premier_Collection 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.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, the additional disclosures outlined in the state addenda are not universally applicable to all franchisees. Instead, their applicability is contingent upon meeting the specific jurisdictional requirements of the relevant state franchise laws. This means that a franchisee will only be subject to a particular state's additional disclosure if they independently meet the criteria established by that state's franchise registration and disclosure laws, without relying on the existence of these additional disclosures.
For a prospective Bw Premier Collection franchisee, this implies that they need to be aware of the franchise laws in their specific state or the state where their hotel will be operated. The FDD includes state-specific addenda that modify or supplement the standard franchise agreement to comply with local regulations. These addenda cover various aspects, such as termination rights, dispute resolution, and waivers, and are designed to protect franchisees' rights as defined by state law.
For example, the FDD includes specific provisions for franchisees in states like California, Illinois, Maryland, Michigan, New York, North Dakota, Rhode Island, Washington and Wisconsin. These provisions address issues such as termination and nonrenewal rights, choice of law and forum, and waivers of legal rights. A franchisee operating in Maryland, for instance, has the right to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and any claims must be brought within 3 years after the grant of the franchise. Similarly, in Washington, noncompetition covenants have specific earnings thresholds for enforcement against employees and independent contractors.
Therefore, it is crucial for potential Bw Premier Collection franchisees to carefully review the state-specific addenda in conjunction with the standard franchise agreement to fully understand their rights and obligations under the laws of their state. Consulting with a legal professional experienced in franchise law is highly recommended to ensure compliance and to navigate the complexities of state-specific regulations.