Does any officer of Bw Premier Collection own an interest in any supplier?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
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There is currently no supplier in which one of our officers owns an interest.
Our affiliate, AutoClerk, received approximately $16,960 in revenue during 2024 from selling optional items to Hotel Owners. Neither we nor our affiliates received any revenue or other material consideration during 2024 from selling required items to Hotel Owners, but we and they may do so in the future. Designated suppliers did, however, make payments (i.e., commissions and rebates) to us in 2024 in connection with required and discretionary purchases by Hotel Owners and our and our affiliates' licensees and franchisees operating under other hotel brands (collectively referred to as "BW Hotel Operators"). We generally receive a margin of approximately 7.8% from furniture, fixtures and equipment suppliers and commissions of 2.3% from direct order suppliers (i.e., suppliers of hotel operational items such as guest room amenities, linens, etc.) based on purchases made by BW Hotel Operators. During fiscal year 2024, we received total revenue of $580 million and we received $4.6 million, or 0.8% of our total revenue, from vendors (i.e., commissions and rebates) in connection with purchases by BW Hotel Operators. All such funds were used for the administration of the supply pr
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 30–32)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, no officer of Bw Premier Collection currently owns an interest in any supplier. This means that Bw Premier Collection franchisees are not obligated to purchase goods or services from any supplier that has a financial connection to the company's leadership.
However, the FDD also states that Bw Premier Collection's affiliate, AutoClerk, received approximately $16,960 in revenue during 2024 from selling optional items to Hotel Owners. While this doesn't represent a direct conflict of interest through officer ownership, it does indicate a related-party transaction where an affiliated company benefits from sales to franchisees. Additionally, designated suppliers made payments (i.e., commissions and rebates) to Bw Premier Collection in 2024 in connection with required and discretionary purchases by Hotel Owners and licensees/franchisees operating under other hotel brands. Bw Premier Collection generally receives a margin of approximately 7.8% from furniture, fixtures and equipment suppliers and commissions of 2.3% from direct order suppliers based on purchases made by BW Hotel Operators. During fiscal year 2024, Bw Premier Collection received total revenue of $580 million and $4.6 million, or 0.8% of its total revenue, from vendors in connection with purchases by BW Hotel Operators. All such funds were used for the administration of the supply program.
Prospective franchisees should be aware of these relationships and how they might influence supplier recommendations or requirements. While there's no direct officer ownership creating a conflict, the commission and rebate structure could incentivize Bw Premier Collection to favor certain suppliers. It is important to note that Bw Premier Collection does provide access to a procurement service and negotiates purchase arrangements with suppliers, but does not provide material benefits to System Hotels based on their purchase of particular products or services, or use of particular suppliers. Collectively, these purchases and leases are less than 1% of your overall purchases and leases in establishing a System Hotel and approximately 1% - 2% of your overall purchases and leases in operating a hotel operating under the Licensed Marks.