What is the initial term length for the Bw Premier Collection agreement?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
1. Term.
- a. 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 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the initial term of the agreement ends on December 31st of the year that is the tenth anniversary of the hotel's activation on BWI Reservation Channels. For example, if a hotel is activated on the BWI Reservation Channels in 2026, the initial term would end on December 31, 2036. This term applies to both BW Premier Collection and BW Signature Collection.
The agreement automatically renews for successive ten-year terms unless either party provides notice of non-renewal at least six months before the end of the current term. This automatic renewal clause is fairly standard in franchising, providing long-term stability for both the franchisee and franchisor.
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 must 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. This cancellation clause provides some flexibility but also includes financial disincentives for early termination by the franchisee.
Additionally, either party can cancel the agreement with 30 days' notice if there is cause, defined as a breach of a material term of the agreement. The party alleging cause must provide written notice and allow a 15-day cure period if the breach can be remedied. This provision ensures that both parties have recourse if the other fails to meet their obligations under the agreement.