What is the obligation of the parties in resolving disputes related to a Bw Premier Collection franchise?

According to the 2025 Bw Premier Collection FDD, both parties agree to work together in good faith to resolve any disputes related to payment obligations. Additionally, both parties are expected to collaborate in defending against any claims made against either party. This suggests a commitment to resolving issues amicably and cooperatively.

For prospective franchisees, this clause indicates that Bw Premier Collection aims to maintain a collaborative relationship when addressing disagreements. While it doesn't specify a formal dispute resolution process like mediation or arbitration, it sets the expectation for open communication and a willingness to find mutually acceptable solutions. This can be beneficial as it may lead to quicker and less costly resolutions compared to formal legal proceedings.

However, franchisees should be aware that this clause does not guarantee a favorable outcome in all disputes. The success of this approach depends on the willingness of both parties to engage in good faith negotiations. Franchisees should still carefully review the entire franchise agreement and seek legal counsel to understand their rights and obligations in case disputes cannot be resolved through cooperation. Furthermore, franchisees in Washington should note that the Washington Franchise Investment Protection Act may supersede the agreement in certain areas, including termination and renewal, and that the arbitration or mediation site will be in Washington, unless otherwise agreed upon.