Does the Bw Premier Collection franchise agreement require a renewal provision?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
It is agreed to by the Parties that the following brand shall apply:
[BW Premier Collection® or BW Signature Collection®]
1. Term.
- a. This Agreement has a term that ends on December 31st of the year that is the tenth (10th) anniversary of the date of the Hotel's activation on BWI Reservation Channels (e.g., bestwestern.com, the BWI reservations call center, and BWI connections to GDS systems) (the "Term"). The Term shall automatically renew for successive ten (10) year Terms unless a Party provides the other with notice of its intent not to renew at least six (6) months prior to the end of the then- current Term.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the franchise agreement term ends on December 31st of the year that is the tenth anniversary of the hotel's activation on BWI Reservation Channels. The agreement automatically renews for successive ten-year terms unless either party provides notice of intent not to renew at least six months before the current term ends.
This automatic renewal clause provides a significant benefit to Bw Premier Collection franchisees, ensuring business continuity and stability. Franchisees can expect to operate under the Bw Premier Collection brand for extended periods, provided they adhere to the agreement terms and maintain a positive relationship with the franchisor. The six-month notice period allows ample time for either party to prepare for the end of the agreement, facilitating a smooth transition if a non-renewal decision is made.
However, the FDD also states that Washington Franchise Investment Protection Act, Chapter 19.100 RCW may supersede the agreement in areas of termination and renewal. Prospective franchisees in Washington should be aware of this and understand their rights under Washington law. Similarly, Michigan law prohibits certain unfair provisions that are sometimes in franchise documents. If any of the listed provisions are in these franchise documents, the provisions are void and cannot be enforced against the franchisee.