What is the estimated range for organizational expenses for a Bw Premier Collection hotel?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
ROOM)
| 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 | |||||
| Column 1 Type of Expenditure | Column 2 Amount | Column 3 Method of Payment | Column 4 When Due | Column 5 To Whom Payment is to be made | |
| Application Fee (1) | $4,000 | Lump Sum | When you submit the Application to us for processing | Us | |
| Affiliation Fee (2) | $25,000 | Lump Sum | Prior to execution of the Distribution Agreement | Us | |
| Impact Study Fee (3) | $0 - $4,000 | Lump Sum | Before Commission of | Us | #### Explanatory Notes |
- * All amounts listed in the above tables are non-refundable, unless stated otherwis
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, organizational expenses for converting an existing hotel to a Bw Premier Collection hotel are estimated to range from $1,050 to $2,100. These expenses cover the costs associated with engaging an accountant and attorney to set up the business structure and ensure compliance. The actual cost will depend on the work done by these professionals and the standard regional rates in the hotel's location.
These organizational expenses are paid as agreed upon with the accountant and attorney. It is important to note that these figures are estimates, and the franchisee's actual costs may vary. Factors influencing these costs include the complexity of the business structure, the amount of legal and accounting work required, and the prevailing professional rates in the area.
Prospective Bw Premier Collection franchisees should budget accordingly and consult with local accountants and attorneys to obtain more accurate estimates for their specific circumstances. Understanding these costs upfront is crucial for effective financial planning and ensuring a smooth transition to operating a Bw Premier Collection hotel.