Who is responsible for the accuracy of tax rate information for a Bw Premier Collection franchise?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
- n. Authorize BWI to calculate relevant rates, taxes and fees based upon Hotel Information. Hotel is solely responsible for the accuracy of tax rate information, the identification of applicable taxes, any amendments to tax rate information, and the payment of taxes.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the franchisee (referred to as 'Hotel' in the document) is solely responsible for the accuracy of tax rate information. Specifically, the franchisee must ensure the tax rates are accurate, identify all applicable taxes, make any necessary amendments to tax rate information, and handle the payment of these taxes. Bw Premier Collection authorizes BWI to calculate relevant rates, taxes, and fees based on the information provided by the Hotel.
This means that prospective Bw Premier Collection franchisees must take responsibility for understanding and complying with all local, state, and federal tax laws relevant to their hotel's operations. This includes staying up-to-date on any changes to tax laws and rates, as well as ensuring that the hotel's accounting systems accurately reflect these changes. Failure to comply with these obligations could result in penalties, fines, or legal action against the franchisee.
While Bw Premier Collection authorizes BWI to calculate taxes based on the hotel's information, the ultimate responsibility for accuracy and compliance rests with the franchisee. This arrangement is typical in many franchise systems, where the franchisor provides certain support services but the franchisee remains responsible for day-to-day operations and compliance matters. Therefore, a prospective Bw Premier Collection franchisee should consult with a tax professional to ensure they fully understand their tax obligations and have systems in place to meet them.