What is the estimated range for insurance costs for a Bw Premier Collection hotel?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Commission of Impact Study if Required | ||||
| Renovation Work (4) | $0 - $2,677,500 | As Agreed | As Agreed | Contractors |
| Furniture, Fixtures and | $0 - $3,415,500 | As Agreed | As Agreed | Suppliers |
| Equipment (5) | ||||
| Inventory and Operating | $72,450 - $90,300 | As Agreed | As Agreed | Suppliers |
| Equipment (6) | ||||
| Signage (7) | $315 - $525 | As Agreed | As Agreed | Suppliers |
| Distribution System | $1,150 - $8,000 | Lump Sum | As Required | Us |
| Photographs Fee (8) | ||||
| Computer System (9) | $0 - $13,100 | Cash, Check or Wire Transfer | As Required | Suppliers/Us |
| Insurance (10) | $8,750 - $13,750 | As Required | As Required | Agent/Insurer |
| Organizational Expense | $1,050 - $2,100 | As Agreed | As Agreed | Accountant/Attorney |
| (11) | ||||
| Permits and Licenses | $0 - $63,000 | As Required | As Required | Governmental |
| (12) | Agency | |||
| Miscellaneous Project | $0 - $26,250 | As Incurred | As Agreed | Suppliers |
| Management Expenses | ||||
| (13) | ||||
| Additional Funds | $500,000 - | As Incurred | As Arranged | Suppliers |
| (3 months) (14) | $545,000 | |||
| TOTAL (15) | ||||
| $612,715 - $6,888,025 |
Source: Item 7 — Estimated Initial Investment (FDD pages 26–30)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the estimated initial investment for insurance ranges from $8,750 to $13,750. This figure represents the cost of the annual premium for three months. However, the document specifies that insurance premiums can vary significantly based on factors such as the hotel's location, size, and the type of coverage purchased.
Prospective Bw Premier Collection franchisees should recognize that the provided insurance cost is merely an estimate. The actual cost may fluctuate depending on the specific characteristics of their hotel and the insurance policies they choose. It is crucial to obtain quotes from multiple insurance providers to secure the most competitive rates and appropriate coverage for their business needs.
Bw Premier Collection requires franchisees to maintain minimum levels and types of insurance as specified in the Distribution Agreement, and the franchisor must be named as an additional insured and certificate holder. This requirement ensures that Bw Premier Collection is protected from potential liabilities arising from the franchisee's operations. Franchisees should carefully review the Distribution Agreement to understand the specific insurance requirements and ensure they comply with these obligations.
Given the variability in insurance costs, it is advisable for potential Bw Premier Collection franchisees to conduct thorough research and consult with insurance professionals to determine the most accurate and realistic insurance budget for their specific circumstances. This proactive approach will help them avoid unexpected expenses and ensure they have adequate protection for their investment.