factual

What recourse does an applicant have if their Bw Premier Collection franchise application is denied?

Bw_Premier_Collection Franchise · 2025 FDD

Answer from 2025 FDD Document

Applicant agrees that it shall have no recourse of any kind against Best Western, its directors, officers, employees, agents or Members if this Application is denied.

Source: Item 23 — Receipts (FDD pages 54–203)

What This Means (2025 FDD)

According to Bw Premier Collection's 2025 Franchise Disclosure Document, an applicant has no recourse against Best Western International, Inc. if their application is denied. The document explicitly states that the applicant agrees they will have no recourse of any kind against Best Western, its directors, officers, employees, agents, or members if the application is denied. This means that the applicant cannot sue or otherwise seek damages or other remedies from Best Western if their application to become a franchisee is rejected.

This lack of recourse is significant because Bw Premier Collection requires a $4,000 non-refundable application fee. Additionally, if an impact study is required, the applicant is responsible for a non-refundable impact study fee. The application also requires payment of the First Year Fee, which is held by Best Western as a good-faith deposit until the execution of a Distribution Agreement. Despite these fees and the investment of time and resources in the application process, the Board of Directors can deny an application for any reason or no reason at all.

This provision is not uncommon in the franchise industry, as franchisors often want to maintain control over who they allow to join their system. However, it is crucial for potential Bw Premier Collection franchisees to understand that their application can be rejected without explanation and that they will have no legal means to challenge that decision. Therefore, applicants should carefully consider their chances of approval and the potential loss of the application and impact study fees before proceeding with the application process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.