When are the administrative fees for rate parity violations due for a Bw Premier Collection hotel?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| Annual Quality Assurance (QA) Assessment Fee | Annual assessment fee. | Cost recovery fee billed annually, currently $2,100. Hotel is also required to provide a free room night to the QA Inspector. |
|---|---|---|
| QA Reassessment Fee | Fee charged for reassessment after a failed QA assessment. | $2,100 cost recovery fee. Hotel is also required to provide a free room night to the QA Inspector. |
| Medallia Fee | Fee to provide Hotel access to guest satisfaction surveys through Medallia. | $50 monthly usage fee- required. |
| Online Travel Agency (“OTA”) Marketing Fund Assessment | Annual marketing fee for costs of OTA advertising and marketing. | $250 annual fee per System Hotel. |
| Customer Care/First Contact Resolution (FCR) | Fee for BWI Customer Care agent. Hotel given 2 days to respond; if no response, complaint will be addressed by BWI. | $50 per call handled. FCR: cost of compensation up to one comp room. Non-FCR: $75 per non- response, plus cost of any compensation to customer |
| Two-Way Connectivity Support Fee | If the Hotel elects two-way connectivity, a one- time Two-Way connectivity installation fee of $1,500 and a Two-Way Connectivity Support fee that ranges from $41 to $669 per month (based on the hotel’s property management system). | Due and payable monthly upon statement receipt. |
| Hotel Managed Security Service (“HMSS”) | One-time fee for installation of HMSS typically ranging from $2,100 to $3,500 and a monthly maintenance fee of $130 per month upon installation of HMSS. | Due and payable monthly upon statement receipt. |
| Service Charge | Service charge if you do not make any payment to us or our affiliates when due. | 1 ½ % of delinquent account balance assessed monthly (18% Annual Percentage Rate). |
| Transfer Fee | Fee to transfer or assign the Agreement (requires BWI consent). | $10,000 |
| Business Travel | Business travel support and services. | No additional cost. |
| Representation | ||
| Leisure Travel Representation | Leisure travel support and services. | No additional cost. |
| Digital Marketing | Digital Marketing consulting services. | No additional cost. |
| Supply | Access to supply procurement/negotiated brand pricing using the BWI Supply Endorsed Program. | No additional cost. |
| BWI LMS | Access to BWI online education and training resources. | No additional cost. |
| Rate Parity | System Hotels that repeatedly violate rate parity | Administrative fee charged to |
| are subject to administrative fees which range up | hotels for rate parity violations. | |
| to $4,000 per violation depending on the number | Due and payable upon | |
| of violations annually. | statement receipt. |
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, administrative fees for rate parity violations are due and payable upon statement receipt. System Hotels that repeatedly violate rate parity are subject to these administrative fees. These fees can range up to $4,000 per violation, depending on the number of violations annually.
Rate parity is a common practice in the hotel industry, requiring hotels to offer the same rates across all distribution channels. This ensures that customers find consistent pricing whether they book directly with the hotel, through the Bw Premier Collection website, or through third-party online travel agencies (OTAs). Violations can occur if a hotel offers lower rates on some channels than others, potentially undermining the brand's pricing strategy and relationships with its distribution partners.
For a prospective Bw Premier Collection franchisee, it's crucial to maintain strict adherence to rate parity requirements to avoid these administrative fees. The potential for fees up to $4,000 per violation could significantly impact profitability, especially for hotels that frequently fail to comply. Franchisees should implement robust monitoring systems to ensure consistent pricing across all booking platforms and train staff to understand and uphold rate parity policies.