Under what condition is the Bw Premier Collection Impact Study Fee due?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
is. | | Column 1 Type of Expenditure | Column 2 Amount | Column 3 Method of Payment | Column 4 When Due | | Application Fee (1) | $4,000 | Lump Sum | When you submit the Application to us for processing | | Affiliation Fee (2) | $25,000 | Lump Sum | Prior to execution of the Distribution Agreement | | Impact Study Fee (3) | $0 - $4,000 | Lump Sum | Before |#### CONVERSION OF AN EXISTING HOTEL TO A SIGNATURE HOTEL (90-ROOM)
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Commission of Impact Study if Required | ||||
| Renovation Work (4) | $0 - $2,677,500 | As Agreed | As Agreed | Contractors |
| Fur |
Source: Item 7 — Estimated Initial Investment (FDD pages 26–30)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the Impact Study Fee, ranging from $0 to $4,000, is due before the commission of the impact study. This fee is a lump sum payment. The FDD clarifies that if a Member requests an impact study upon receipt of the application, the prospective franchisee is required to pay the Impact Study Fee so that Bw Premier Collection can conduct the study. However, if Bw Premier Collection denies the application for any reason, the Impact Study Fee will be refunded to the applicant.
This means that a potential Bw Premier Collection franchisee may need to budget up to $4,000 for this study. The fee is contingent on a current member requesting the study, so it is not a guaranteed expense for every applicant. The fact that the fee is refundable if the application is denied provides some financial protection for the applicant.
Impact studies are not uncommon in the franchise industry, particularly in the hospitality sector, as they help assess the potential impact of a new location on existing franchisees. The refundable nature of the fee if the application is denied is a positive aspect, as it reduces the financial risk for the applicant in such cases. Prospective franchisees should inquire about the specific circumstances that trigger an impact study and the criteria used to determine the fee amount within the stated range.