Do the notes to the financial statements for Bw Premier Collection disclose any related party transactions?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
ion as of November 30, 2023 and 2022, respectively.
(14) Related Party Transactions
Each member of our Board of Directors ("Director", or an entity affiliated with a Director) is a party to a membership agreement with the Company, and as a result, our Directors pay system and other fees to us based upon the terms of their respective membership agreements. Our Directors are party to such membership agreements on the same terms and conditions as each of the other Members of the Company.
The Company entered into a Revolving Credit Facility agreement with a Limited Liability Company, partially owned by a Director, to assist in development of @Home by Best WesternSM ("@Home") hotels (see note 18).
Director compensation consisted of $114,351 and $109,218 in annual Director fees per district for the years ended November 30, 2023 and 2022, respectively. Directors are reimbursed reasonable, ordinary and necessary business and travel expenses in accord
Source: Item 21 — Financial Statements (FDD page 54)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the financial statement notes do disclose related party transactions. Specifically, each member of Bw Premier Collection's Board of Directors is party to a membership agreement with the company, under the same terms and conditions as other members. As a result, directors pay system and other fees to Bw Premier Collection based on their membership agreements.
Additionally, Bw Premier Collection has a Revolving Credit Facility agreement with a Limited Liability Company partially owned by a Director, to assist in the development of @Home by Best WesternSM hotels. Director compensation consisted of $114,351 and $109,218 in annual Director fees per district for the years ended November 30, 2023 and 2022, respectively. Directors are also reimbursed for reasonable business and travel expenses according to Bw Premier Collection's policies.
For a prospective franchisee, these related party transactions are important to note as they provide insight into the financial relationships between Bw Premier Collection and its leadership. While the transactions appear to be on the same terms as other members, it's prudent to understand the potential impact of these relationships on the overall financial health and decision-making processes of the company. It is also worth noting that the amounts paid to directors are not insignificant and could be a negotiating point for franchisees if they feel that the fees are too high.