What is the range for the estimated total initial investment for a Bw Premier Collection franchise?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made | |
|---|---|---|---|---|---|
| Commission of Impact Study if Required | |||||
| Renovation Work (4) | $0 - $2,677,500 | As Agreed | As Agreed | Contractors | |
| Furniture, Fixtures and | $0 - $3,415,500 | As Agreed | As Agreed | Suppliers | |
| Equipment (5) | |||||
| Inventory and Operating | $72,450 - $90,300 | As Agreed | As Agreed | Suppliers | |
| Equipment (6) | |||||
| Signage (7) | $315 - $525 | As Agreed | As Agreed | Suppliers | |
| Distribution System | $1,150 - $8,000 | Lump Sum | As Required | Us | |
| Photographs Fee (8) | |||||
| Computer System (9) | $0 - $13,100 | Cash, Check or Wire Transfer | As Required | Suppliers/Us | |
| Insurance (10) | $8,750 - $13,750 | As Required | As Required | Agent/Insurer | |
| Organizational Expense | $1,050 - $2,100 | As Agreed | As Agreed | Accountant/Attorney | |
| (11) | |||||
| Permits and Licenses | $0 - $63,000 | As Required | As Required | Governmental | |
| (12) | Agency | ||||
| Miscellaneous Project | $0 - $26,250 | As Incurred | As Agreed | Suppliers | |
| Management Expenses | |||||
| (13) | |||||
| Additional Funds | $500,000 - | As Incurred | As Arranged | Suppliers | |
| (3 months) (14) | $545,000 | ||||
| TOTAL (15) | |||||
| $612,715 - $6,888,025 | |||||
| Column 1 Type of Expenditure | Column 2 Amount | Column 3 Method of Payment | Column 4 When Due | Column 5 To Whom Payment is to be made | |
| Application Fee (1) | $4,000 | Lump Sum | When you submit the Application to us for processing | Us | |
| Affiliation Fee (2) | $25,000 | Lump Sum | Prior to execution of the Distribution Agreement | Us | |
| Impact Study Fee (3) | $0 - $4,000 | Lump Sum | Before Commission of | Us | #### Explanatory Notes |
- * All amounts listed in the above tables are non-refundable, unless stated otherwise belo
Source: Item 7 — Estimated Initial Investment (FDD pages 26–30)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the estimated total initial investment for converting an existing hotel to a Bw Premier Collection Premier Hotel ranges from $612,715 to $6,888,025. This substantial range accounts for various expenditures, with the most significant being renovation work, which can range from $0 to $2,677,500, and furniture, fixtures, and equipment, which can range from $0 to $3,415,500. These costs are highly variable and depend on the condition and size of the existing hotel. Other notable expenses include inventory and operating equipment, ranging from $72,450 to $90,300, and additional funds for the first three months of operation, estimated between $500,000 and $545,000. These figures do not include debt service or lease costs. Prospective franchisees should be aware that these are estimates and actual costs can vary significantly. Bw Premier Collection does not offer direct or indirect financing for any part of the initial investment. The availability and terms of financing depend on many factors, including the availability of financing generally, your creditworthiness and collateral, and lending policies of financial institutions from which you request a loan.
Several fees contribute to the initial investment. The application fee is $4,000, and the affiliation fee is $25,000. An impact study fee, if required, can range from $0 to $4,000. Other costs include signage ($315 to $525), a distribution system photographs fee ($1,150 to $8,000), computer system costs ($0 to $13,100), insurance ($8,750 to $13,750), organizational expenses ($1,050 to $2,100), permits and licenses ($0 to $63,000), and miscellaneous project management expenses ($0 to $26,250). These figures highlight the diverse range of expenses a franchisee might encounter when converting an existing hotel to a Bw Premier Collection franchise.
Prospective franchisees should carefully consider these estimated costs and conduct their own due diligence to determine the actual investment required for their specific location and circumstances. The FDD advises that the estimates are based on Bw Premier Collection's and its affiliates' 70+ years of experience, but actual costs may vary substantially. It is crucial to independently investigate the actual costs before executing the Distribution Agreement. Understanding these potential costs is essential for making an informed decision about investing in a Bw Premier Collection franchise.