Under what circumstances is the Rider signed for the Bw Premier Collection Distribution Agreement?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
INC. DISTRIBUTION AGREEMENT FOR USE IN ILLINOIS
This Rider (the "Rider") is made and entered into as of the Effective Date as stated in the Distribution Agreement (defined below), by and between Best Western International, Inc., an Arizona corporation with its principal business address at 6201 N. 24th Parkway, Phoenix, Arizona 85016 ("we," "us" "our," or "BWI"), and ___________________________________ ("you," "your," or "Hotel Owner").
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- Background. BWI and Hotel Owner are parties to that certain Distribution Agreement that has been signed at the same time as the signing of this Rider (the "Distribution Agreement"). This Rider is part of the Distribution Agreement. This Rider is being signed because (a) the offer to sell or buy the franchise for the Hotel was made in the State of Illinois, and/or (b) the offer to sell or buy the franchise for the Hotel was made outside of the State of Illinois and accepted in the State of Illinois, and/or (c) Hotel Owner is domiciled in the State of Illinois, and/or (d) the franchised Hotel will be located in the State of Illinois.
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- Governing Law/Consent to Jurisdiction.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the Rider to the Best Western International, Inc. Distribution Agreement is signed concurrently with the Distribution Agreement. This Rider becomes a part of the Distribution Agreement.
The Rider is signed under specific circumstances related to the location and legal jurisdiction of the franchise. These circumstances include when the hotel operated under the Distribution Agreement is located in a specific state, such as Minnesota, Maryland, Washington, New York, North Dakota, or Illinois. It also applies when the hotel owner is a resident of these states. Furthermore, the Rider is required if any part of the franchise offering or sales activity occurred within these states or if the offer to buy the franchise was accepted in these states.
The inclusion of the Rider ensures compliance with state-specific franchise laws, such as the Maryland Franchise Registration and Disclosure Law, the Rhode Island Franchise Investment Act, the Washington Franchise Investment Protection Act, and Article 33 of the General Business Law of the State of New York. The Rider modifies the Distribution Agreement to reflect these state laws, addressing issues like governing law, jurisdiction, limitations of claims, and waivers of liability. For example, the Rider for use in Washington states that in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will prevail.
For a prospective Bw Premier Collection franchisee, this means that the terms of their Distribution Agreement may be modified by a Rider to ensure compliance with the franchise laws of their state. It is important for franchisees to carefully review the Rider and understand how it affects their rights and obligations under the Distribution Agreement. Franchisees should also be aware that the specific terms of the Rider may vary depending on the state in which they are operating.