What is the primary composition of the restricted cash held by Bw Premier Collection?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, the restricted cash is primarily made up of annual dues paid by members before the related service period. These annual dues are kept in a custodial account and are not accessible to the company until December of the following fiscal year.

As of November 30, 2024, Bw Premier Collection had $11.8 million in restricted cash, while on November 30, 2023, the amount was $12.2 million. This cash is held in a custodial account and is not available to Bw Premier Collection until December of the following fiscal year.

For a prospective franchisee, this means that a portion of the dues collected are not immediately available for Bw Premier Collection's operational use. Instead, these funds are held in a separate account until the service period they relate to begins. This arrangement provides a level of security and ensures that funds are available to cover the services promised to members. Franchisees should be aware of how these restrictions might affect the financial management and cash flow of Bw Premier Collection.