What is the exclusive jurisdiction and venue for any dispute related to the Bw Premier Collection franchise agreement?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
In addition, if litigation is not precluded by this Agreement, a Hotel Owner may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the jurisdiction and venue for disputes are determined by specific state laws, potentially overriding the standard terms of the franchise agreement. For instance, Illinois law dictates that any provision in the franchise agreement that designates jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois may be permitted. Similarly, Maryland allows a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
In Washington, franchisees have the right to bring actions related to franchise sales or violations of the Washington Franchise Investment Protection Act in Washington state. The FDD specifies that the arbitration or mediation site for franchises purchased in Washington will be in Washington, unless otherwise agreed upon. These stipulations ensure that franchisees are not unduly burdened by having to pursue legal action in distant or inconvenient locations.
For prospective Bw Premier Collection franchisees, it is crucial to understand how these state-specific provisions could impact their rights and obligations. The FDD emphasizes that certain waivers of rights, particularly those related to state franchise laws, may not be enforceable. Franchisees should consult with legal counsel to fully understand their rights and the implications of these jurisdictional clauses in their specific state.