When does the initial term of the Bw Premier Collection Distribution Agreement begin?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN DISTRIBUTION AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the franchise term | Section 1(a) of the Distribution Agreement. | The Effective Date of the Distribution Agreement is the date of execution. The Term of the Distribution Agreement begins on the first day the Hotel is activated on our reservations system and ends on December 31st of the year that is the 10th anniversary (“Term”). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 41–44)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the term of the Distribution Agreement begins on the first day that the hotel is activated on BWI reservation channels. These channels include bestwestern.com, the BWI reservations call center, and BWI connections to GDS systems. The agreement ends on December 31st of the year that is the tenth anniversary of the hotel's activation date on those BWI Reservation Channels.
This means that the actual start date of the franchise term is not tied to the date of signing the agreement but rather to when the hotel is fully integrated into Bw Premier Collection's reservation system. This is a crucial distinction for franchisees as it links the term's commencement to a tangible operational milestone.
Bw Premier Collection also states that the term automatically renews for successive ten-year terms unless either party provides written notice of intent not to renew at least six months before the end of the current term. This renewal clause provides both the franchisee and Bw Premier Collection with long-term certainty, but it also necessitates careful consideration of renewal intentions well in advance of the term's expiration.