How does Bw Premier Collection define Level 3 fair value measurements?

According to the 2025 FDD, Bw Premier Collection defines Level 3 fair value measurements as those "derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable." This definition is part of the company's broader approach to measuring fair value for its assets and liabilities.

In simpler terms, Level 3 measurements rely on internal assumptions rather than readily available market data. This might occur when valuing unique or specialized assets where there isn't an active market to provide pricing benchmarks. For a prospective Bw Premier Collection franchisee, understanding these measurements might not directly impact day-to-day operations.

However, it's useful to know how Bw Premier Collection assesses the value of its assets, as this can reflect on the overall financial health and stability of the company. While the FDD provides this definition, it does not specify which particular assets or situations would require a Level 3 valuation. Therefore, it would be prudent for a potential franchisee to inquire about the specific types of assets that Bw Premier Collection values using Level 3 measurements and the potential implications for the franchisee.