When does Bw Premier Collection gain access to the annual dues held in the custodial account?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
eg)
November 30, 2024
(f) Restricted Cash
Restricted cash is primarily comprised of annual dues paid by Members prior to the related service period. Annual dues are held in a custodial account and are not available to the Company until December of the following fiscal year. As of November 30, 2024 and 2023, there was $11.8 million
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, annual dues paid by members are held in a custodial account. Bw Premier Collection cannot access these funds until December of the following fiscal year.
For example, dues collected throughout the fiscal year ending November 30, 2024, are not available to Bw Premier Collection until December 2024. This arrangement ensures that the funds are reserved for the services and benefits to be provided to members during the upcoming year.
As of November 30, 2024, the amount of restricted cash held in this custodial account was $11.8 million, while the corresponding amount on November 30, 2023, was $12.2 million. This restricted cash is primarily comprised of annual dues paid by Members prior to the related service period.