What is the purpose of the First Year Fee deposit for a Bw Premier Collection franchise application?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
The Best Western Board of Directors ("Board") will not consider the Application until first preliminarily reviewed by a Best Western management committee and Best Western has received the First Year Fee via electronic wire transfer, **(**See Exhibit A), which will be held by Best Western as a good-faith deposit until execution of a Distribution Agreement (the "Agreement").
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the First Year Fee is required to be paid via electronic wire transfer and will be held by Best Western International, Inc. as a good-faith deposit until the execution of a Distribution Agreement. The Best Western Board of Directors will not consider the application until the First Year Fee is received.
This deposit indicates the applicant's serious intent to proceed with the franchise. It provides Bw Premier Collection with some assurance that the applicant is committed while they evaluate the application and prepare for a potential agreement. This good-faith deposit is held until the Distribution Agreement is executed, at which point it likely becomes part of the initial franchise fee or is otherwise applied as specified in the agreement.
It is important to note that payment of this fee, or submission of the application, does not guarantee affiliation with Bw Premier Collection. The Board may deny an application for any reason. If the application is approved, the applicant will be asked to execute an agreement and has fifteen days from the offer to do so.