What is the range of estimated useful lives used by Bw Premier Collection for depreciation?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
Property, equipment and computer software and hotel investments are recorded at cost. Costs of improvements that extend the economic life or improve service potential are also capitalized. Depreciation on land improvements, buildings, and furniture and equipment is computed using straight-line and accelerated methods over estimated useful lives ranging from 3 to 39 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the related lease term or the estimated useful lives of the assets.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company uses a range of estimated useful lives for depreciation purposes. Specifically, depreciation on land improvements, buildings, and furniture and equipment is calculated using straight-line and accelerated methods. These methods are applied over estimated useful lives ranging from 3 to 39 years.
This means that when Bw Premier Collection accounts for the depreciation of its assets, it estimates how long those assets will be useful, and this period can be anywhere from 3 to 39 years. The specific length of time depends on the type of asset. For example, a building might be depreciated over 39 years, while furniture could be depreciated over a shorter period, like 5 to 10 years.
For a prospective franchisee, understanding these depreciation ranges is important for interpreting Bw Premier Collection's financial statements. It provides insight into how the company values its assets and manages its expenses over time. It's also worth noting that leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets, which could impact the financial planning for a franchisee operating in a leased property.