What is the length of the initial franchise term for a Bw Premier Collection Distribution 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.
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 initial term of the Distribution Agreement ends on December 31st of the year that marks 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 the franchise term is essentially for a 10-year period, starting from the date the hotel is active on Bw Premier Collection's reservation system.
Bw Premier Collection's Distribution Agreement automatically renews for successive 10-year terms. However, either party can prevent this renewal by providing written notice of their intent not to renew at least six months before the end of the current term. This provides franchisees with the opportunity to continue their affiliation with Bw Premier Collection, assuming both parties are satisfied with the arrangement.
It's important to note that either party can cancel the Distribution Agreement without cause by giving one year's prior written notice. If the franchisee cancels without cause, they must pay Bw Premier Collection liquidated damages. These damages are calculated by averaging the fees owed to BWI over the prior twelve months and multiplying that average by the lesser of twelve or the remaining number of months in the term. This cancellation clause and associated fees are important considerations for prospective franchisees.