Under what circumstances is the Rider signed in relation to the Bw Premier Collection franchise?
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").
-
- 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.
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. The Rider is annexed to, and forms a part of, the Distribution Agreement. The Rider is signed under specific circumstances related to the location and legal requirements of certain states.
Specifically, the Rider is signed if the hotel that the Hotel Owner will operate is located in certain states such as Minnesota, Washington, North Dakota, Maryland, Illinois, or Rhode Island. It is also signed if the Hotel Owner is a resident of these states or if any of the offering or sales activity related to the Distribution Agreement occurred in these states. The inclusion of the Rider ensures compliance with the franchise laws of these specific states.
The Rider modifies the Distribution Agreement to include provisions that address state-specific legal requirements. For example, in Maryland, the Rider ensures that the three-year statute of limitations for claims under the Maryland Franchise Registration and Disclosure Law is maintained. In Washington, the Rider ensures that the provisions of the Washington Franchise Investment Protection Act prevail in case of a conflict of laws. Similarly, in North Dakota, the Rider addresses concerns related to liquidated damages on termination, referencing Section 51-19-09 of the North Dakota Franchise Investment Law.
These state-specific Riders are crucial for Bw Premier Collection franchisees as they provide additional legal protections and ensure compliance with local franchise laws. Prospective franchisees should carefully review the Rider applicable to their state to understand their rights and obligations under the franchise agreement.