What is the fixed annual interest rate on the Tempe Loan for the Bw Premier Collection?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
The interest rate on the Tempe Loan is a fixed annual rate of 3.50% and is computed and accrued on an ACT/360 basis. The Tempe Loan is secured by, among other things, the Deed of Trust and is guaranteed by the Company.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, the interest rate on the Tempe Loan is a fixed annual rate of 3.50%. This rate is computed and accrued on an ACT/360 basis.
This means that for any franchisee involved with the Tempe Loan, the interest they will be charged is set at 3.50% annually. The ACT/360 basis indicates how the interest is calculated, specifically using the actual number of days in a year over a 360-day year for computation purposes.
It is also important to note that the Tempe Loan is secured by a Deed of Trust and guaranteed by the Company, meaning Bw Premier Collection. This arrangement provides security for the lender and assurance for the franchisee regarding the backing of the loan.