What secures the Denver Loan for Bw Premier Collection, besides the guarantee by the Company?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
The interest rate on the Denver Loan is a fixed annual rate of 3.21% and is computed and accrued on an ACT/360 basis. The Denver Loan is secured by, among other things, the Deed of Trust and is guaranteed by the Company.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the Denver Loan is secured by a Deed of Trust, in addition to being guaranteed by the Company. The Denver Loan was established in March 2020 with UMB Bank, initially allowing Denver 3560 to request advances up to $21.6 million. It was later modified in July 2021 to increase the availability of loan advances to $24.4 million.
Interest on the outstanding principal balance of the Denver Loan was payable monthly from May 1, 2020, through April 1, 2023. Subsequently, starting April 1, 2023, principal and interest are due and payable in an amount determined by UMB to be sufficient to amortize the outstanding principal balance over a 25-year period, with the remaining balance due on the maturity date of March 11, 2027.
This information is relevant to prospective Bw Premier Collection franchisees as it provides insight into the financial obligations and loan structure of the company. Understanding the terms and security of the Denver Loan can help franchisees assess the financial stability and risk associated with investing in a Bw Premier Collection franchise.