When does the initial term of the Bw Premier Collection Distribution Agreement end?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement has a term that ends on December 31st of the year that is the tenth (10th) anniversary of the date of the Hotel's activation on BWI Reservation Channels (e.g., bestwestern.com, the BWI reservations call center, and BWI connections to GDS systems) (the "Term"). The Term shall automatically renew for successive ten (10) year Terms unless a Party provides the other with notice of its intent not to renew at least six (6) months prior to the end of the then- current Term.
- b. Other than as provided above in paragraph 1.a., either Party may cancel this Agreement without cause only upon giving one (1) year's prior written notice to the other Party. In the event Hotel cancels this Agreement without cause, Hotel will pay BWI liquidated damages in an amount calculated by taking the average of the prior twelve (12) months fees owed to BWI (but if fees have been owed to BWI for less than twelve (12) months, the average of all prior months) and multiplying that average by the lesser of: (i) twelve (12), or (ii) the remaining number of months in the Term.
- c. Either Party may cancel this Agreement upon thirty (30) days' notice with cause. Prior to such notice of cancellation, the Party alleging "cause" shall provide the other Party written notice of the "cause" and, if the breach is capable of being cured, allow for a fifteen (15) day cure period. For purposes of this Agreement, "cause" shall be defined as a Party's breach of a material term of this Agreement (e.g., if the
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 41–44)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the Distribution Agreement has an initial term that ends on December 31st of the year that is the tenth anniversary of the hotel's activation on BWI Reservation Channels. These channels include bestwestern.com, the BWI reservations call center, and BWI connections to GDS systems.
This means that if a hotel is activated on the BWI Reservation Channels on July 1, 2025, the initial term of the Distribution Agreement would end on December 31, 2035. The agreement automatically renews for successive ten-year terms unless either party provides notice of intent not to renew at least six months prior to the end of the current term.
Bw Premier Collection also allows either party to cancel the agreement without cause by giving one year's prior written notice. However, if the hotel cancels without cause, it will have to pay BWI liquidated damages. These damages are calculated by averaging the prior twelve months of fees owed to BWI and multiplying that average by the lesser of twelve or the remaining number of months in the term. Additionally, either party can cancel the agreement with 30 days' notice if there is cause, provided that the breaching party has a 15-day period to cure the breach if possible.