FranchiseVerdict
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B66/100FDD 2026

BW Premier Collection and BW Signature Collection — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

25 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
25
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
66 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
2
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Not waived
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 66/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates franchisor financial distress or viability questions
  2. 02HIGHActive litigation involving breach of contract, unpaid fees, and wrongful termination suggests systemic franchisor-franchisee relationship problems
  3. 03MINORState regulatory actions related to franchise registration and disclosure laws indicate compliance violations and potential enforcement risk
  4. 04MEDSlow unit growth of 4.7% YoY combined with 67 units suggests mature/stagnating system with limited expansion momentum
  5. 05MINORNo average revenue or net income disclosure (Item 19) prevents validation of ROI claims and profitability benchmarks
  6. 06MINORZero territory protection exposes franchisees to direct brand competition and cannibalization risk from other locations
  7. 07MINOR5% royalty on gross rooms revenue (not net) creates fixed burden regardless of profitability
  8. 08MINORWide investment range ($442K-$6.9M) signals inconsistent unit economics and unclear capital requirements

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.