What happens if the breach of the Bw Premier Collection Distribution Agreement is not capable of being cured?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN DISTRIBUTION AGREEMENT | SUMMARY |
|---|---|---|
| d. Termination by | Sections 1(a), 1(b) | The Hotel Owner can terminate the Distribution |
| Hotel Owner | and 1(c) of the | Agreement (1) at any time upon providing 1 years’ |
| PROVISION | SECTION IN DISTRIBUTION AGREEMENT | SUMMARY |
| Distribution Agreement. | prior written notice or (2) upon 30 days’ notice with cause if we do not cure within 15 days of receiving written notice of the cause (if the breach is capable of being cured). (Subject to state law). | |
| f. Termination by licensor with cause | Section 1(c) of the Distribution Agreement. | We can terminate the Distribution Agreement upon 30 days’ notice with cause if you do not cure within 15 days of receiving written notice of the cause (if the breach is capable of being cured). |
| g. “Cause” defined - curable defaults | Section 1(c) of the Distribution Agreement. | “Cause” is defined as a party’s breach of a material term of the Distribution Agreement. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 41–44)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, Bw Premier Collection can terminate the Distribution Agreement with 30 days' notice if the hotel owner does not cure a breach within 15 days of receiving written notice, assuming the breach is capable of being cured. The FDD does not specifically state what happens if the breach is not capable of being cured.
However, the document does define "cause" for termination as a party's breach of a material term of the Distribution Agreement. This implies that if a breach of the Distribution Agreement occurs, Bw Premier Collection must first provide written notice to the hotel owner, and if the breach is curable, allow a 15-day period for the hotel owner to resolve the issue.
Since the FDD does not explicitly detail the procedure for breaches that cannot be cured, it is important for a prospective franchisee to seek clarification from Bw Premier Collection regarding the specific actions that Bw Premier Collection may take if a breach is deemed incurable. Understanding the consequences of both curable and incurable breaches is crucial for making an informed investment decision.