Must Bw Premier Collection disclose any pending criminal action against them alleging embezzlement?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided below, neither we, any predecessor, any person identified in Item 2, or an affiliate offering franchises under our principal trademark:
- (a) has an administrative, criminal, or civil action pending against us, it, him, or her alleging a felony; a violation of a franchise, antitrust, or securities law; fraud; embezzlement; fraudulent conversion; misappropriation of property; unfair or deceptive practices; or comparable civil or misdemeanor allegations.
- (b) has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or been held liable in a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion; misappropriation of property; unfair or deceptive practices; or comparable allegations.
- (c) is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a federal, state, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, as a result of a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, Bw Premier Collection must disclose any pending criminal action against them alleging embezzlement. Specifically, Item 3 of the FDD requires disclosure if Bw Premier Collection, any predecessor, any person identified in Item 2, or an affiliate offering franchises under their principal trademark has an administrative, criminal, or civil action pending against them alleging embezzlement. This disclosure requirement aims to provide transparency to potential franchisees, allowing them to assess the risks associated with investing in a Bw Premier Collection franchise.
This disclosure extends to other related issues, such as allegations of a felony; a violation of a franchise, antitrust, or securities law; fraud; fraudulent conversion; misappropriation of property; unfair or deceptive practices; or comparable civil or misdemeanor allegations. Furthermore, Bw Premier Collection must disclose if they, or related parties, have been convicted of a felony or pleaded nolo contendere to a felony charge within the last 10 years, or been held liable in a civil action alleging similar violations.
The FDD also requires disclosure if Bw Premier Collection is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a federal, state, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, as a result of a concluded or pending action or proceeding brought by a public agency. This includes any currently effective order of any national securities association or national securities exchange, or any injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department.