What is Bw Premier Collection required to maintain regarding financial and operational covenants?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
per month guest satisfaction survey usage fee.
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- Hotel Obligations. Hotel agrees and shall:
- a. Maintain the Hotel and provide amenities as determined by BWI from time to time consistent with the Hotel's competitive set.
- b. Complete all renovations within the required timelines, as outlined in the Property Improvement Plan ("PIP"). All items without an extension noted in the "Post Activation" column of the PIP must be addressed prior to activation on BWI Reservation Channels.
- c. Complete a deep-clean program prior to activation on BWI Reservation Channels.
- d. Maintain a preventative maintenance program.
- e. Comply with all quality assurance ("QA") processes and procedures, achieve a passing BWI QA assessment rating prior to activation on BWI Reservation Channels, and maintain a passing rating for the duration of this Agreement. If Hotel does not pass a QA assessment, Hotel: (i) will be reassessed without notice within, on, or about ninety (90) days; and (ii) will be responsible for a QA reassessment fee.
- f. Provide: (i) a paid or complimentary breakfast to guests as determined by the Hotel with requirements consistent with the Hotel's competitive set and guidelines
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- established by BWI; and (ii) complimentary high-speed internet access.
- g. Pay fees and/or charges to BWI as detailed in Exhibit A.
- h. Make all Hotel non-booked rooms available (i.e., last room availability) for display on, and bookable through, BWI Reservation Channels, BWI distribution partner channels, including B2B channels such as the Global Distribution System ("GDS"), and online travel agencies that have a distribution contract with BWI that allows for the sale of Hotel's rooms.
- i. If Hotel does not elect to use a BWI two-way interface, then Hotel will make inventory available using BWI's Member Web (i.e., extranet).
- j. Provide to BWI all room rates and rate plans equal to or better than those made available or offered to the public through any Hotel, third-party booking or other distribution channel on a last room available basis. Hotel shall comply with BWI's rate integrity requirements.
- k. Use BWI as its exclusive hotel brand distribution partner.
- l. Maintain adequate information security procedures and controls to prevent the unintended disclosure of, and the unauthorized access to or misappropriation of, any personal data or information of any Hotel guest. Hotel shall maintain PCI compliance and shall annually certify to BWI its PCI compliance.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 FDD, Bw Premier Collection hotels must adhere to specific operational and financial obligations to maintain their affiliation. Operationally, the hotel must maintain its premises and provide amenities that align with its competitive set, as determined by Best Western International (BWI). This includes completing all renovations within the timelines specified in the Property Improvement Plan (PIP), with items in the "Post Activation" column addressed before activation on BWI Reservation Channels. A deep-clean program must also be completed before activation. Furthermore, a preventative maintenance program must be in place. Hotels must comply with all quality assurance (QA) processes and procedures, achieving a passing BWI QA assessment rating before activation on BWI Reservation Channels and maintaining this rating throughout the agreement. Failure to pass a QA assessment results in a reassessment within 90 days and a reassessment fee. Hotels must also provide a paid or complimentary breakfast consistent with their competitive set and guidelines.
In terms of financial obligations, Bw Premier Collection hotels are required to maintain specific insurance policies. This includes commercial general liability insurance with an annual aggregate coverage of not less than $6,000,000 USD, with strong recommendations for coverage related to assault and battery, abuse and molestation, and human trafficking liability. Exposure to carbon monoxide may not be excluded and may not be limited to amounts less than $6,000,000 USD. Additionally, hotels must have a policy covering liability for owned, non-owned, and hired automobiles with an annual aggregate coverage of not less than $1,000,000 USD, as well as cyber liability insurance with an annual aggregate coverage of not less than $1,000,000 USD, including reasonable sub-limits for regulatory fines, PCI fines, legal services, public relations, crisis management, and notifications/credit monitoring for guest or personnel records.
These requirements ensure that Bw Premier Collection hotels maintain a consistent standard of quality and service, protecting the brand's reputation and providing guests with a reliable experience. The insurance requirements also mitigate potential financial risks for both the hotel owner and BWI. Prospective franchisees should carefully review these obligations to ensure they can meet these standards and maintain compliance throughout the term of their agreement.