What is the interest rate on the Denver Loan for Bw Premier Collection?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
The interest rate on the Denver Loan is a fixed annual rate of 3.21% and is computed and accrued on an ACT/360 basis. The Denver Loan is secured by, among other things, the Deed of Trust and is guaranteed by the Company.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the interest rate on the Denver Loan is a fixed annual rate of 3.21%. This rate is computed and accrued on an ACT/360 basis. This means the interest calculation considers the actual number of days in a month ('ACT') divided by a 360-day year, which is a common method for calculating interest on loans.
The Denver Loan is secured by a Deed of Trust, indicating that the loan is tied to a specific property, providing the lender with a claim against the property in case of default. Additionally, the loan is guaranteed by the Company, meaning Bw Premier Collection's parent company is responsible for the debt if the borrower fails to pay.
This information is relevant for prospective franchisees as it provides insight into the financial obligations and arrangements of Bw Premier Collection. Understanding the interest rate and the security behind the Denver Loan can help franchisees assess the financial stability and risk associated with the franchise.