For Bw Premier Collection, on what terms and conditions are the Directors party to membership agreements?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
respectively.
(14) Related Party Transactions
Each member of our Board of Directors ("Director", or an entity affiliated with a Director) is a party to a membership agreement with the Company, and as a result, our Directors pay system and other fees to us based upon the terms of their respective membership agreements. Our Directors are party to such membership agreements on the same terms and conditions as each of the other Members of the Company.
The Company entered into a Revolving Credit Facility agreement with a Limited Liability Company, partially owned by a Director, to assist in development of @Home by Best WesternSM ("@Home") hotels (see note 18).
Director compensation consisted of $114,351 and $109,218 in annual Director fees per district for the years ended November 30, 2023 and 2022, respectively. Directors are reimbursed reasonable, ordinary and necessary business and travel expenses in accord
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, each member of the Board of Directors, or an entity affiliated with a Director, may be party to a membership agreement with the company. As a result, these Directors pay system and other fees to Bw Premier Collection based upon the terms of their individual membership agreements.
The FDD states that Bw Premier Collection's Directors are party to such membership agreements on the same terms and conditions as each of the other Members of the Company. This suggests that there are no special or preferential terms extended to the Directors in their capacity as members.
In addition, the document mentions that the company entered into a Revolving Credit Facility agreement with a Limited Liability Company partially owned by a Director, to assist in the development of @Home by Best WesternSM hotels. The Director compensation consisted of $114,351 and $109,218 in annual Director fees per district for the years ended November 30, 2023 and 2022, respectively. Directors are also reimbursed for reasonable, ordinary, and necessary business and travel expenses in accordance with the company's travel and expense policies.