For Bw Premier Collection, how are non-U.S. dollar monetary assets and liabilities translated?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company translates its non-U.S. dollar monetary assets and liabilities using period-end exchange rates. This means that the value of assets and debts held in currencies other than U.S. dollars are converted to U.S. dollars at the exchange rate in effect at the end of each reporting period.

Income and expense items are remeasured at average exchange rates prevailing during the reporting periods. This approach uses the average exchange rate over the period to convert income and expenses from foreign currencies to U.S. dollars.

The gains and losses resulting from these exchange rate conversions, whether unrealized or realized, are included in the Consolidated Statements of Revenues and Expenses under interest and dividend income, and interest and other expense, net. For the years ended November 30, 2024, and 2023, Bw Premier Collection experienced an approximate $0.9 million loss and a $0.4 million gain, respectively, due to these exchange rate fluctuations. This indicates that currency exchange rates can have a notable impact on Bw Premier Collection's financial results.

For a prospective franchisee, this accounting practice highlights the importance of understanding how currency fluctuations can affect the financial performance of Bw Premier Collection, especially if the franchisee operates or invests internationally. Franchisees should consider these potential impacts when evaluating the financial statements and projections provided by Bw Premier Collection.