How must the Impact Study Fee be paid for a Bw Premier Collection franchise?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
ill be held by Best Western as a good-faith deposit until execution of a Distribution Agreement (the "Agreement").
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- In the event an impact study is required as further described in paragraph 6 below, it is understood and agreed that you will be responsible for a non-refundable Impact Study Fee, which must be paid via electronic wire transfer before the impact study is conducted and which will be a prerequisite to your Application's processing.
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Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, if an impact study is required, the Impact Study Fee must be paid via electronic wire transfer. This payment is required before the impact study is conducted and is a prerequisite for the application to be processed. The Impact Study Fee is non-refundable. All fees, including the Application Fee and Impact Study Fee, are payable in U.S. or Canadian funds.
This means that if Bw Premier Collection determines that an impact study is necessary to assess the potential effect of a new franchise location on existing franchisees, the prospective franchisee will need to arrange for an electronic wire transfer to cover the cost of the study. This requirement ensures that Bw Premier Collection receives payment promptly and can proceed with the study without delay. The non-refundable nature of the fee means that even if the application is ultimately denied or withdrawn, the franchisee will not receive a refund for the impact study.
For a prospective Bw Premier Collection franchisee, this highlights the importance of understanding the conditions under which an impact study might be required and the potential costs involved. Since the fee is non-refundable, it is crucial to carefully evaluate the location and market area before submitting an application to minimize the risk of incurring this expense without a guaranteed approval. Franchisees should inquire about the typical circumstances that trigger an impact study and the estimated cost to better prepare for this potential expense.
It is common practice in the franchise industry for franchisors to require fees for various assessments and studies, especially when evaluating new locations. These fees help cover the franchisor's costs associated with due diligence and ensuring the continued success of the franchise system. However, the specific requirements for payment methods and the non-refundable nature of such fees can vary, so it is essential for prospective franchisees to carefully review the FDD and seek clarification from the franchisor on any unclear points.