Does Bw Premier Collection have to maintain certain financial and operational covenants?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Hotel Obligations. Hotel agrees and shall:
- a. Maintain the Hotel and provide amenities as determined by BWI from time to time consistent with the Hotel's competitive set.
- b. Complete all renovations within the required timelines, as outlined in the Property Improvement Plan ("PIP"). All items without an extension noted in the "Post Activation" column of the PIP must be addressed prior to activation on BWI Reservation Channels.
- c. Complete a deep-clean program prior to activation on BWI Reservation Channels.
- d. Maintain a preventative maintenance program.
- e. Comply with all quality assurance ("QA") processes and procedures, achieve a passing BWI QA assessment rating prior to activation on BWI Reservation Channels, and maintain a passing rating for the duration of this Agreement. If Hotel does not pass a QA assessment, Hotel: (i) will be reassessed without notice within, on, or about ninety (90) days; and (ii) will be responsible for a QA reassessment fee.
- f. Provide: (i) a paid or complimentary breakfast to guests as determined by the Hotel with requirements consistent with the Hotel's competitive set and guidelines
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document outlines several operational requirements that Bw Premier Collection hotels must adhere to. These requirements function as operational covenants, ensuring the hotel maintains certain standards.
According to the FDD, Bw Premier Collection hotels must maintain the hotel and provide amenities consistent with its competitive set, as determined by Best Western International (BWI). Franchisees are obligated to complete all renovations within the timelines specified in the Property Improvement Plan (PIP), with items in the "Post Activation" column addressed before activation on BWI Reservation Channels. Additionally, a deep-clean program must be completed before activation.
Bw Premier Collection franchisees must maintain a preventative maintenance program and comply with all quality assurance (QA) processes and procedures. A passing BWI QA assessment rating is required before activation on BWI Reservation Channels and must be maintained throughout the agreement. Failure to pass a QA assessment results in a reassessment within approximately 90 days and incurs a reassessment fee. Furthermore, Bw Premier Collection hotels must provide a paid or complimentary breakfast to guests, consistent with the hotel's competitive set and guidelines.