Can I, as a Bw Premier Collection franchisee, face competition from outlets that the franchisor owns?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive any minimum territory. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We are not restricted from soliciting or accepting reservations from hotel guests located anywhere. We and our affiliates may use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to accept reservations under the Licensed Marks and under other trademarks from hotel guests located anywhere. We do not need to pay you any compensation for soliciting or accepting reservations from hotel guests located anywhere. You are not restricted from soliciting or accepting reservations from hotel guests located anywhere. You may use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to accept reservations under the Licensed Marks from hotel guests located anywhere. You have no options, rights of first refusal, or similar rights to acquire additional franchises.
Source: Item 12 — Territory (FDD pages 37–38)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, as a franchisee, you may face competition from other franchisees, outlets that Bw Premier Collection owns, or from other channels of distribution or competitive brands that Bw Premier Collection controls. Bw Premier Collection is not restricted from soliciting or accepting reservations from hotel guests located anywhere. Bw Premier Collection and its affiliates may use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to accept reservations under the Licensed Marks and under other trademarks from hotel guests located anywhere. Bw Premier Collection does not need to pay you any compensation for soliciting or accepting reservations from hotel guests located anywhere.
Furthermore, the FDD states that guest lodging properties owned, managed, or licensed to use marks by Bw Premier Collection, SureStay, Inc., or their affiliates or subsidiaries may currently or in the future be located in or near your Hotel, and you may compete with these guest lodging properties. There is no mechanism for resolving any conflicts that may arise between your Hotel and hotels which are owned, managed or licensed to use marks by Bw Premier Collection, SureStay, Inc., or their affiliates or subsidiaries.
This lack of territorial protection and the possibility of competition from other Bw Premier Collection-affiliated properties is a significant factor for potential franchisees to consider. It is not uncommon in the franchise industry for franchisors to reserve the right to operate competing outlets, but the extent of potential competition and the absence of conflict resolution mechanisms should be carefully evaluated. Prospective franchisees should conduct thorough market research to assess the potential impact of competition in their desired location.