Does Bw Premier Collection consider the aggregate of Monthly Fees a trust, or act as a fiduciary?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, the aggregate of Monthly Fees paid to them does not constitute a trust, and Bw Premier Collection is not a fiduciary with respect to these fees. This means that Bw Premier Collection has considerable discretion in how they use the Monthly Fees, which are currently 5% of Gross Rooms Revenue for System Hotels.

The FDD specifies that Bw Premier Collection may use these fees for various programs, including advertising, promotions, market research, loyalty programs, administrative costs, and other related services. The decision to spend any of these funds on marketing, and how and when to spend them, is under Bw Premier Collection's sole control. They are not obligated to make expenditures for a franchisee that are equivalent or proportionate to the franchisee's payments, or to ensure that the Hotel benefits directly or proportionately from such expenditures.

This arrangement gives Bw Premier Collection significant flexibility in managing marketing and other programs across the entire system, but it also means that individual franchisees have limited control over how their Monthly Fees are used and no guarantee of a direct return on those fees. The FDD also indicates that the amount of Monthly Fees collected and spent on marketing is not audited, although financial statements reflecting the collection and expenditure of these fees are available for review upon a Hotel Owner's request. During the 2024 fiscal year, the fees were spent approximately 50% on advertising and media, 12% on promotions, and 38% on internal technology platforms.