Which state's law governs disputes related to the Bw Premier Collection franchise agreement?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS
Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
MARYLAND
- The following is added to the end of the fifth paragraph under the heading "Advertising" in Item 11 of the Disclosure Document:
You may obtain an accounting of Annual Fees and Monthly Fees expenditures upon written request to us.
- The "Summary" section of Item 17(v), entitled Choice of forum, of the Disclosure Document is amended by adding the following:
A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- The following language is added to the end of Item 17 of the Disclosure Document:
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the governing law for disputes varies by state. For franchisees in Illinois, Illinois law governs the agreements between the parties. The FDD specifies that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois is permitted. Similarly, any attempt to waive compliance with Illinois franchise law is void.
For franchisees in Maryland, Maryland law applies to claims arising under the Maryland Franchise Registration and Disclosure Law, and franchisees may bring lawsuits in Maryland for such claims. The FDD also clarifies that the statute of limitations for claims under Maryland law is three years from the grant of the franchise. Furthermore, any representations requiring a release, estoppel, or waiver of liability do not apply to liabilities incurred under Maryland franchise law.
For franchisees in North Dakota and Rhode Island, the franchise agreement states that North Dakota and Rhode Island law will apply to the agreement to the extent required by their respective franchise investment laws. For franchisees in Washington, the Washington Franchise Investment Protection Act will prevail in the event of a conflict of laws. Prospective franchisees should carefully review the specific addenda and riders applicable to their state to understand their rights and obligations under the franchise agreement.