For Bw Premier Collection, when are dues considered immediately due and payable?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, fees and dues become immediately due and payable if a member resigns or is terminated. These fees and dues are recognized as revenue when cash is received, regardless of the contract's term. This policy is part of Bw Premier Collection's overall revenue recognition strategy for fees, dues, and assessments. These are established by the membership and the Board of Directors to compensate the company for providing services to members, soft brand licensees, SureStay franchisees, and WorldHotels licensees.

This means that if a Bw Premier Collection franchisee decides to leave the franchise system or if Bw Premier Collection terminates the franchise agreement, the franchisee is immediately obligated to pay any outstanding fees and dues. This is a critical point for prospective franchisees to consider, as it could create a significant financial burden upon exiting the system, regardless of how much time is left on the franchise agreement.

This immediate payment requirement is a fairly standard practice in franchising, designed to protect the franchisor's revenue stream and ensure that all outstanding obligations are met. However, the specific terms and conditions surrounding resignation or termination can vary widely among franchise systems. Therefore, a prospective Bw Premier Collection franchisee should carefully review the franchise agreement and seek legal counsel to fully understand the implications of this clause.