Under what conditions does the Bw Premier Collection Distribution Agreement automatically renew?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. This Agreement has a term that ends on December 31st of the year that is the tenth (10th) anniversary of the date of the Hotel's activation on BWI Reservation Channels (e.g., bestwestern.com, the BWI reservations call center, and BWI connections to GDS systems) (the "Term"). The Term shall automatically renew for successive ten (10) year Terms unless a Party provides the other with notice of its intent not to renew at least six (6) months prior to the end of the then- current Term.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 41–44)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the Distribution Agreement has an initial term that ends on December 31st of the year that is the tenth anniversary of the hotel's activation on BWI Reservation Channels. This activation includes channels such as bestwestern.com, the BWI reservations call center, and BWI connections to GDS systems.
The agreement will automatically renew for successive ten-year terms if neither party provides written notice of their intent not to renew. This notice must be given at least six months before the end of the current term.
This automatic renewal clause is fairly standard in franchising, providing both the franchisee and franchisor with the stability of a long-term agreement. However, it's crucial for a prospective Bw Premier Collection franchisee to mark the notification deadline on their calendar to avoid unwanted renewal. Franchisees should carefully consider their business performance and future plans well in advance of this deadline to make an informed decision about renewal.