What is the required action for a party alleging 'cause' before cancelling the Bw Premier Collection agreement?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, if either party alleges 'cause' as grounds for canceling the agreement, they must first provide written notice to the other party. This notice must detail the specific 'cause' for the intended cancellation. Furthermore, if the alleged breach is capable of being resolved or 'cured', the party in breach must be given a 15-day period to rectify the situation.

This stipulation is significant for prospective Bw Premier Collection franchisees because it establishes a formal process that Bw Premier Collection must follow before terminating the agreement for cause. It ensures that franchisees are informed of the specific reasons for potential termination and are given an opportunity to address and resolve the issues. This cure period can potentially prevent unwarranted terminations and protect the franchisee's investment.

However, the FDD also states that the definition of 'cause' is a party's breach of a material term of the agreement. It is important for a prospective franchisee to understand what constitutes a 'material term' as defined in the agreement, as this will determine the grounds for termination. Additionally, the cure period is only applicable if the breach is 'capable of being cured,' which leaves room for interpretation and potential disputes. Franchisees should seek clarification on what breaches are considered curable versus incurable.

It's also important to note that the FDD includes some state-specific stipulations. For example, with respect to franchises governed by Minnesota law, Bw Premier Collection will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a Hotel Owner be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement. In Virginia, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable. Franchisees should be aware of any state-specific laws that may affect the termination process.