When are SureStay franchisee initial fees due for Bw Premier Collection?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
is received regardless of the term of the contract.
Affiliation fee revenues from Best Western branded hotels are fixed consideration payable upon approval of the Member or licensee by the Board of Directors and acceptance of membership or license terms by the property owner. These revenues are recognized on a straight-line basis over the hotelier's expected life as a Best Western branded hotel or over the initial contract term. SureStay franchisee initial fees are due upon execution of a franchise agreement and recognized over the initial term of the franchise agreement. WorldHotels hotel integration fees are recognized on a straight-line basis over the expected life as a WorldHotels branded hotel. Affiliation fee revenues were $8.8 million and $9.8 million for the y
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, initial franchise fees for SureStay franchisees are due upon the execution of a franchise agreement. This means that a prospective SureStay franchisee must pay the initial fee at the time they sign the franchise agreement to become part of the Bw Premier Collection system.
Bw Premier Collection recognizes this revenue over the initial term of the franchise agreement. This accounting practice spreads the recognition of the initial fee revenue over the life of the agreement rather than recognizing it all upfront.
It is important to note that the excerpt specifically discusses SureStay franchisee fees, not Bw Premier Collection franchisee fees. While Bw Premier Collection is mentioned in the context of revenue recognition for various brands under Best Western, the specific payment terms for Bw Premier Collection initial fees are not detailed in this section. A prospective franchisee should confirm the exact payment schedule and conditions for Bw Premier Collection initial fees with the franchisor.