What is the 'Distribution Agreement' in relation to the Bw Premier Collection franchise?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
_______ ("you," "your," or "Hotel Owner").
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- Background. BWI and Hotel Owner are parties to that certain Distribution Agreement that has been signed concurrently with the signing of this Rider (the "Distribution Agreement"). This Rider is annexed to and forms part of the Distribution Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Hotel that Hotel Owner will operate under the Distribution Agreement was made in the State of New York, and/or (b) Hotel Owner is a resident of New York and will operate the Hotel in New York.
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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, to the extent required by Article 33 of the General Business Law of the State of New York, this Section shall not be considered a waiver of any right conferred upon Hotel Owner by the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder.
- Limitation of Claims. The following language is added as a new Section 4.o of the Distribution Agreement:
However, to the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in Hotel Owner's favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied
- Our Transfer. The following language is added as a new Section 4.p of the Distribution Agreement:
To the extent required by applicable law, no assignment will be made except to an assignee who, in BWI's good faith judgment, is willing and able to assume BWI's obligations under this Agreement.
- Termination by You. The following is added to the end of Section 1.b and 1.c of the Distribution Agreement:
Hotel Owner may terminate this Agreement on any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York.
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- Application of Rider. There are circumstances in which an offering made by BWI would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed to be made in New York if Hotel Owner is domiciled in and the Hotel will be opened in New York. We are required to furnish a New York prospectus to every prospective Hotel Owner who is protected under the New York General Business Law, Article 33..
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- 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 franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[Signatures on following page]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Effective Date stated in the Distribution Agreement.
HOTEL OWNER: BWI: [HOTEL OWNER], a [INSERT TYPE OF Best Western International, Inc., an Arizona ENTITY] corporation Executed on: Executed on:
RIDER TO THE BEST WESTERN INTERNATIONAL, INC. DISTRIBUTION AGREEMENT FOR USE IN NORTH DAKOTA
This Rider (the "Rider") is made and entered into as of the Effective Date as stated in the Distribution Agreement (defined below), by and between Best Western International, Inc., an Arizona corporation with its principal business address at 6201 N. 24th Parkway, Phoenix, Arizona 85016 ("we," "us" "our," or "BWI"), and ___________________________________ ("you," "your," or "Hotel Owner").
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- Background. BWI and Hotel Owner are parties to that certain Distribution Agreement that has been signed concurrently with the signing of this Rider (the "Distribution Agreement"). This Rider is annexed to and forms part of the Distribution Agreement. This Rider is being signed because (a) Hotel Owner is a resident of North Dakota and the Hotel will be located in North Dakota, and/or (b) the offer or sale of the franchise for the Hotel that Hotel Owner will operate under the Distribution Agreement was made in the State of North Dakota.
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- Liquidated Damages on Termination. The following language is added to the end of Section 1.c of the Distribution Agreement:
The Commissioner has determined termination or liquidated damages to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. However, BWI and Hotel Owner agree to enforce these provisions to the extent the law allows.
- Governing Law/Consent to Jurisdiction. The following language is added to the end of Section 4.l of the Distribution Agreement:
Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to this Agreement. In addition, to the extent required by applicable law, Hotel Owner may bring an action in North Dakota.
- 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 franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[Signatures on following page]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Effective Date stated in the Distribution Agreement.
HOTEL OWNER: BWI: [HOTEL OWNER], a [INSERT TYPE OF Best Western International, Inc., an Arizona ENTITY] corporation Executed on: Executed on:
RIDER TO THE BEST WESTERN INTERNATIONAL, INC. DISTRIBUTION AGREEMENT FOR USE IN RHODE ISLAND
This Rider (the "Rider") is made and entered into as of the Effective Date as stated in the Distribution Agreement (defined below), by and between Best Western International, Inc., an Arizona corporation with its principal business address at 6201 N. 24th Parkway, Phoenix, Arizona 85016 ("we," "us" "our," or "BWI"), and ___________________________________ ("you," "your," or "Hotel Owner").
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- Background. BWI and Hotel Owner are parties to that certain Distribution Agreement that has been signed concurrently with the signing of this Rider (the "Distribution Agreement"). This Rider is annexed to and forms part of the Distribution Agreement. This Rider is being signed because (a) Hotel Owner is a resident of Rhode Island and the Hotel that Hotel Owner will operate under the Distribution Agreement will be located in Rhode Island; and/or (b) any of the offering or sales activity relating to the Distribution Agreement occurred in Rhode Island.
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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:
Notwithstanding the foregoing, to the extent required by applicable law, Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act. Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
To the extent required by applicable law, Hotel Owner may bring an action in Rhode Island for claims arising under the Rhode Island Franchise Investment Act.
- 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 franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[Signatures on following page]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Effective Date stated in the Distribution Agreement.
HOTEL OWNER: BWI: [HOTEL OWNER], a [INSERT TYPE OF Best Western International, Inc., an Arizona ENTITY] corporation Executed on: Executed on:
RIDER TO THE BEST WESTERN INTERNATIONAL, INC. DISTRIBUTION AGREEMENT FOR USE IN WASHINGTON
This Rider (the "Rider") is made and entered into as of the Effective Date as stated in the Distribution Agreement (defined below), by and between Best Western International, Inc., an Arizona corporation with its principal business address at 6201 N. 24th Parkway, Phoenix, Arizona 85016 ("we," "us" "our," or "BWI"), and ___________________________________ ("you,"
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the Distribution Agreement is a central contract between Best Western International (BWI) and the Hotel Owner. Several excerpts refer to this agreement in the context of state-specific riders and application procedures. These riders, which modify the Distribution Agreement's terms, are signed concurrently with the Distribution Agreement and become part of it. These riders address specific legal requirements or considerations within certain states.
For a prospective Bw Premier Collection franchisee, the Distribution Agreement establishes the core terms of the franchise relationship. The riders, however, introduce state-specific nuances that could significantly impact the franchisee's rights and obligations. For example, riders for states like Rhode Island, Washington, Maryland, and Illinois address issues such as governing law, jurisdiction, statutes of limitations, and waivers of liability, ensuring compliance with local franchise laws.
Furthermore, before the Distribution Agreement is even offered, an applicant must pay a $4,000 non-refundable application fee. After preliminary approval, the applicant must pay the First Year Fee, which Best Western holds as a good-faith deposit until the Distribution Agreement is executed. The applicant has 15 days from the offer to execute the Distribution Agreement. This highlights the importance of carefully reviewing the Distribution Agreement and any associated riders with legal counsel to fully understand the contractual obligations and potential liabilities before signing.
In summary, the Distribution Agreement, along with its state-specific riders, defines the legal and operational framework for a Bw Premier Collection franchise. Franchisees must pay close attention to these documents to ensure they are aware of their rights, responsibilities, and any state-specific regulations that may apply.