Who administers the Best Western Rewards program (BWR) for Bw Premier Collection?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
Best Western Rewards*®* frequent stay program ("BWR*®* program")
The Company administers the BWR program for the benefit of BWH and BWR program members. Under our BWR program, the Company has a performance obligation to provide or arrange for the provision of goods or services between BWR program members and BWH hotels in exchange for the redemption of points earned from past activities. Costs of operating the BWR program, including costs for marketing, promotion, and other member services, are charged to the BWH hotels through an assessment fee that is based on members' qualified expenditures. The assessment fees received from BWH hotels are deferred and recognized as program revenues in the Consolidated Statements of Revenues and Expenses as the loyalty points are redeemed and the related service, net of redemption expense, is provided. The amount of revenue the Company recognizes upon point redemption is impacted by the Company's estimate of the breakage for points that BWR members will never redeem. The Company estimates breakage based on historical experience and expectations of future BWR member behavior, including analyses performed by and input of third-party actuaries. All BWR program costs are recognized as incurred and are recorded in program cost of sales in the Consolidated Statements of Revenues and Expenses.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, "The Company" administers the Best Western Rewards (BWR) program for the benefit of both BWH (Best Western Hotels) and the BWR program members. The BWR program is a frequent stay program.
This means that Bw Premier Collection oversees the loyalty program, managing the accrual and redemption of points between BWR members and BWH hotels. They are responsible for providing or arranging goods and services in exchange for points earned.
The costs associated with running the BWR program, including marketing, promotions, and other member services, are covered by assessment fees charged to BWH hotels. These fees are based on members' qualified expenditures. The revenue recognized from point redemption is influenced by the company's estimate of points that will never be redeemed, which is determined using historical data, future expectations, and third-party actuarial analysis.