How are annual dues recognized as revenue for Bw Premier Collection?

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. These annual dues are recognized as revenue ratably over the year to which the continuing membership applies. This means that Bw Premier Collection recognizes the revenue from annual dues gradually throughout the year rather than all at once when the dues are received.

This approach to revenue recognition aligns the revenue with the period in which Bw Premier Collection provides its services and support to its members. By recognizing revenue ratably, Bw Premier Collection ensures that its financial statements accurately reflect the ongoing nature of its relationship with its members and the continuous delivery of services. This method is consistent with standard accounting practices, which aim to match revenues with the expenses incurred to generate those revenues.

However, there is an exception to this ratable recognition. If a member resigns or is terminated, all outstanding fees and dues become immediately due and payable, as per the terms of the applicable contract. In such cases, Bw Premier Collection recognizes the revenue when cash is received, regardless of the original term of the contract. This ensures that Bw Premier Collection accounts for the revenue promptly when a membership ends prematurely.

For a prospective Bw Premier Collection franchisee, this revenue recognition policy means that the franchisor's reported revenues in its financial statements will reflect the ongoing provision of services to its members. It also highlights the importance of understanding the terms of the membership agreement, particularly regarding the consequences of early termination, as this can affect how and when Bw Premier Collection recognizes revenue.