What is the condition for the Rider's application to a Bw Premier Collection franchise offering?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Background. BWI and Hotel Owner are parties to that certain Distribution Agreement that has been signed at the same time as the signing of this Rider (the "Distribution Agreement"). This Rider is part of the Distribution Agreement. This Rider is being signed because (a) the offer to sell or buy the franchise for the Hotel was made in the State of Illinois, and/or (b) the offer to sell or buy the franchise for the Hotel was made outside of the State of Illinois and accepted in the State of Illinois, and/or (c) Hotel Owner is domiciled in the State of Illinois, and/or (d) the franchised Hotel 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 4.l of the Distribution 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 4.o of the Distribution Agreement:
Nothing in this Agreement shall shorten any period within which Hotel Owner 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 franchise 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. The following language is added as a new Section 4.p of the Distribution Agreement:
Nothing in this Agreement shall constitute a condition, stipulation, or provision purporting to bind any person acquiring any franchise 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).
- 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
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the Distribution Agreement must be signed concurrently with the signing of the Rider. The Rider is an integral part of the Distribution Agreement. The Rider is signed because of specific circumstances related to the franchisee's location or legal jurisdiction, such as residency, hotel location, or where the franchise offer was made or accepted. For example, this could be due to the franchisee being a resident of a specific state like Maryland, Rhode Island, or Illinois, or because the hotel will be operated in one of those states. The Rider also applies if the offer to sell or buy the franchise was made or accepted in a particular state. These conditions ensure that the franchise agreement complies with the specific franchise laws of the relevant state.
These Riders address specific legal requirements and consumer protections mandated by state franchise laws. For instance, the Rider may include provisions related to governing law, consent to jurisdiction, limitations of claims, and waivers, ensuring that the franchisee's rights under state franchise laws are protected. The Rider explicitly states that no statement or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by the franchisor. This provision is designed to override any conflicting terms in other documents executed in connection with the franchise agreement, reinforcing the franchisee's legal protections.
For a prospective Bw Premier Collection franchisee, understanding the conditions under which a Rider to the Distribution Agreement is required is crucial. It highlights the importance of state-specific franchise laws and the protections they offer. Franchisees should carefully review the Rider and ensure they understand their rights and obligations under the relevant state laws. Consulting with a franchise attorney is advisable to fully comprehend the implications of these provisions and to ensure compliance with all applicable legal requirements.