What happens to intercompany transactions and balances when Bw Premier Collection consolidates financial statements?

According to the 2025 FDD, when Bw Premier Collection prepares consolidated financial statements, all significant intercompany transactions and balances are eliminated. This consolidation process includes the accounts of Bw Premier Collection itself, its wholly-owned subsidiaries, and any entities in which Bw Premier Collection has a controlling financial interest. This also extends to variable interest entities where Bw Premier Collection is the primary beneficiary.

For a prospective franchisee, this means that the financial statements presented offer a comprehensive view of the entire Bw Premier Collection organization's financial performance and position, without distortion from transactions occurring between different parts of the company. Eliminating these internal transactions provides a clearer picture of Bw Premier Collection's financial dealings with outside parties.

This practice is standard in financial reporting to ensure transparency and accuracy. By eliminating intercompany transactions, Bw Premier Collection aims to present a more accurate and reliable financial picture to potential investors, franchisees, and other stakeholders. This ultimately helps franchisees make informed decisions based on the true financial health of the overall Bw Premier Collection enterprise.