What secures the Tempe Loan for the Bw Premier Collection, besides the Deed of Trust?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
The interest rate on the Tempe Loan is a fixed annual rate of 3.50% and is computed and accrued on an ACT/360 basis. The Tempe 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 the 2025 Bw Premier Collection Franchise Disclosure Document, the Tempe Loan is secured by a Deed of Trust and is further guaranteed by the Company. This means that in addition to the real property secured by the Deed of Trust, the loan is also backed by a guarantee from the Bw Premier Collection's parent company.
This guarantee is significant for the lender, UMB Bank, as it provides an additional layer of security beyond the physical assets. If DevCo Tempe defaults on the loan, UMB Bank can pursue the parent company for repayment. This reduces the lender's risk and makes the loan more attractive.
For a prospective Bw Premier Collection franchisee, this information provides insight into the financial structure and obligations of the parent company. While the franchisee is not directly involved in the Tempe Loan, the parent company's financial health and ability to meet its obligations can indirectly impact the brand's overall stability and support for its franchisees. It also indicates that the company is willing to provide financial backing for its development projects, which could be a positive sign for franchisees seeking a stable and reliable franchisor.