When are annual dues established, billed, and payable for Bw Premier Collection membership?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
Annual dues are established, billed and payable each year for continuing membership during the succeeding year. Annual dues are recognized as revenue ratably in the year to which the continuing membership applies. Any Member may resign from the Company at any time, but if the Member resigns or is terminated, fees and dues become immediately due and payable per the terms of the applicable contract and are recognized as revenue when cash is received regardless of the term of the contract.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, annual dues are established, billed, and payable each year for continuing membership during the succeeding year. This means that the amount of the annual dues is determined each year, and franchisees receive a bill for these dues annually. Payment is due at the time of billing to maintain continuous membership.
Bw Premier Collection recognizes these annual dues as revenue ratably over the year to which the continuing membership applies. This accounting practice spreads the revenue recognition evenly throughout the year, aligning it with the period during which the franchisee benefits from the membership.
It's important to note that if a Bw Premier Collection member resigns or is terminated, all fees and dues become immediately due and payable per the terms of the applicable contract. In such cases, the revenue is recognized when cash is received, regardless of the original term of the contract. This policy ensures that Bw Premier Collection receives all outstanding payments upon termination of the membership agreement.