What is the agreement regarding defense of claims against either party in the Bw Premier Collection agreement?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. The Parties agree to work together in defense of any claim against either or both.
to cooperate fully with BWI in defense of any claim made against BWI arising out of loss, damage, or injury sustained on or in connection with the operation of Hotel. Prior to any settlement with a claimant, Hotel shall notify BWI of the proposed settlement and shall use best efforts to secure the release of BWI from liability.
- hh. Hotel agrees to indemnify, hold harmless and assume the defense of BWI with regard to Hotel operations and the providing of accommodations, food, beverages, transportation, and services at the Hotel.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, both parties agree to work together in the defense of any claim against either or both. Additionally, the hotel franchisee agrees to indemnify, hold harmless, and assume the defense of Bw Premier Collection with regard to hotel operations and the provision of accommodations, food, beverages, transportation, and services at the hotel.
Furthermore, the hotel franchisee is expected to cooperate fully with Bw Premier Collection in defending any claim arising from loss, damage, or injury sustained in connection with the operation of the hotel. The franchisee must notify Bw Premier Collection of any proposed settlement with a claimant and use their best efforts to secure the release of Bw Premier Collection from liability before settling.
These clauses mean that a Bw Premier Collection franchisee could bear significant responsibility for legal claims and associated costs arising from the operation of their hotel. This includes not only direct defense costs but also potentially indemnifying Bw Premier Collection for liabilities they incur due to the franchisee's operations. Prospective franchisees should carefully evaluate their insurance coverage and risk management strategies in light of these obligations.