What is the service charge applied to delinquent accounts for a Bw Premier Collection franchise?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| Annual Quality Assurance (QA) Assessment Fee | Annual assessment fee. | Cost recovery fee billed annually, currently $2,100. Hotel is also required to provide a free room night to the QA Inspector. |
|---|---|---|
| QA Reassessment Fee | Fee charged for reassessment after a failed QA assessment. | $2,100 cost recovery fee. Hotel is also required to provide a free room night to the QA Inspector. |
| Medallia Fee | Fee to provide Hotel access to guest satisfaction surveys through Medallia. | $50 monthly usage fee- required. |
| Online Travel Agency (“OTA”) Marketing Fund Assessment | Annual marketing fee for costs of OTA advertising and marketing. | $250 annual fee per System Hotel. |
| Customer Care/First Contact Resolution (FCR) | Fee for BWI Customer Care agent. Hotel given 2 days to respond; if no response, complaint will be addressed by BWI. | $50 per call handled. FCR: cost of compensation up to one comp room. Non-FCR: $75 per non- response, plus cost of any compensation to customer |
| Two-Way Connectivity Support Fee | If the Hotel elects two-way connectivity, a one- time Two-Way connectivity installation fee of $1,500 and a Two-Way Connectivity Support fee that ranges from $41 to $669 per month (based on the hotel’s property management system). | Due and payable monthly upon statement receipt. |
| Hotel Managed Security Service (“HMSS”) | One-time fee for installation of HMSS typically ranging from $2,100 to $3,500 and a monthly maintenance fee of $130 per month upon installation of HMSS. | Due and payable monthly upon statement receipt. |
| Service Charge | Service charge if you do not make any payment to us or our affiliates when due. | 1 ½ % of delinquent account balance assessed monthly (18% Annual Percentage Rate). |
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, a service charge is applied to delinquent accounts. Specifically, if a franchisee does not make payments to Bw Premier Collection or its affiliates when due, a service charge of 1 ½ % of the delinquent account balance is assessed monthly. This equates to an 18% Annual Percentage Rate (APR).
This service charge is a cost that franchisees can avoid by ensuring timely payments. The 1.5% monthly charge can add up quickly, significantly increasing the amount owed on overdue balances. The 18% APR is substantially higher than typical interest rates on business loans or lines of credit, making it a costly penalty for late payments.
Prospective Bw Premier Collection franchisees should be aware of this charge and factor it into their financial planning. Maintaining good financial management practices and ensuring timely payments will help avoid these charges and maintain a healthy financial relationship with the franchisor. Franchisees should also confirm whether this rate is consistent across all states, as some jurisdictions may have regulations that limit the maximum allowable interest or service charge on delinquent accounts.