When is the affiliation fee due for a Bw Premier Collection franchise?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Application Fee (1) | $4,000 | Lump Sum | When you submit the Application to us for processing | Us |
| Affiliation Fee (2) | $25,000 | Lump Sum | Prior to execution of the Distribution Agreement | Us |
| Impact Study Fee (3) | $0 - $4,000 | Lump Sum | Before Commission of | Us |
Source: Item 7 — Estimated Initial Investment (FDD pages 26–30)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the affiliation fee of $25,000 is due as a lump sum payment prior to the execution of the Distribution Agreement. This fee covers orientation, training, on-boarding services, and support provided to new hotel owners joining the Bw Premier Collection system.
Prospective franchisees should be aware that this fee is non-refundable, as stated in the explanatory notes of Item 7. Therefore, it is crucial to carefully consider all aspects of the franchise opportunity before proceeding with the Distribution Agreement. Understanding the terms and conditions outlined in the agreement is essential to avoid any potential financial risks.
In the franchise industry, it is common for franchisors to charge an initial affiliation or franchise fee to cover the costs associated with setting up a new franchisee. The fee amount and payment terms can vary widely depending on the brand, industry, and level of support provided. Bw Premier Collection's affiliation fee falls within a typical range for hotel franchises, but it's important for potential franchisees to compare this fee with those of other similar brands to ensure it aligns with the services and support offered.
It is also important to note that the FDD encourages prospective franchisees to independently investigate all costs associated with converting an existing hotel to a Bw Premier Collection Premier Hotel or Signature Hotel before executing the Distribution Agreement. This due diligence will help ensure that the franchisee is fully aware of the financial commitments involved and can make an informed decision.