Is a Bw Premier Collection Hotel automatically enrolled in the Best Western Rewards program?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
ars ended November 30, 2024 and 2023, respectively.
Best Western Rewards*®* frequent stay program ("BWR*®* program")
The Company administers the BWR program for the benefit of BWH and BWR program members. Under our BWR program, the Company has a performance obligation to provide or arrange for the provision of goods or services between BWR program members and BWH hotels in exchange for the redemption of points earned from past activities. Costs of operating the BWR program, including costs for marketing, promotion, and other member services, are charged to the BWH hotels through an assessment fee that is based on members' qualified expenditures. The assessment fees received from BWH hotels are deferred and recognized as program revenues in the Consolidated Statements of Revenues and Expenses as the loyalty points are redeemed and the related service, net of redemption expense, is provided. The amount of revenue the Company recognizes upon point redemption is impacted by the Company's estimate of the breakage for points that BWR members will never redeem. The Company estimates breakage based on historical experience and expectations of future BWR member behavior, including analyses performed by and input of third-party actuaries. All BWR program costs are recognized as incurred and are recorded in program cost of sales in the Consolidated Statements of Revenues and Expenses.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, Bw Premier Collection hotels participate in the Best Western Rewards (BWR) program. The FDD states that Best Western administers the BWR program for the benefit of both BWH and BWR program members. BWH hotels incur costs for marketing, promotion, and other member services related to the BWR program through assessment fees based on members' qualified expenditures. These fees are then recognized as program revenues as loyalty points are redeemed.
This means that as a Bw Premier Collection franchisee, you will be part of the BWR program, which aims to drive customer loyalty and repeat business. However, it also means that you will be responsible for assessment fees to cover the costs of operating the program. These fees are based on members' qualified expenditures, so the more BWR members spend at your hotel, the higher the assessment fees will be.
The FDD also mentions that program revenues exceeding redemption costs are used to fund the operational expenses of the BWR program. This suggests that the program is designed to be self-sustaining, with revenues from member activity covering the costs of operation. Additionally, the FDD discusses Best Western Travel Cards and how revenue is recognized when these cards are redeemed or when the likelihood of redemption is remote. This indicates that the BWR program includes various components designed to incentivize customer loyalty and generate revenue for Bw Premier Collection and its hotels.
Furthermore, the FDD indicates that Best Western provides BWR support to hotels as part of its digital marketing consultant services. This support includes acting as the primary contact for digital marketing channels and monitoring/maintaining optimization of hotel content. This suggests that Bw Premier Collection franchisees receive assistance in leveraging the BWR program to enhance their digital marketing efforts and attract more customers.