What is the non-discretionary contribution that Best Western makes to the Nonqualified Deferred Compensation Plan (NQP) for participating employees each pay period?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company has a NQP in which key management employees of the Company, as determined by the Board of Directors, are selected to participate. The NQP is a defined contribution plan, in which participating employees may defer a percentage of their annual salaries and a percentage of any incentive compensation into the NQP. The Company contributes: (i) a non-discretionary contribution of 3% of a participating employee's compensation each pay period, and (ii) an annual discretionary contribution, as determined by the Board of Directors, up to 9% of a participating employee's annual compensation.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the company maintains a Nonqualified Deferred Compensation Plan (NQP) for key management employees selected by the Board of Directors. This plan allows participating employees to defer a percentage of their annual salaries and incentive compensation.
Best Western contributes to the NQP in two ways. First, it makes a non-discretionary contribution of 3% of a participating employee's compensation each pay period. Second, Best Western may also make an annual discretionary contribution, as determined by the Board of Directors, up to 9% of a participating employee's annual compensation.
This means that, at a minimum, participating employees will receive a contribution of 3% of their compensation each pay period. The additional discretionary contribution, up to 9%, is not guaranteed and depends on the Board's decision each year. Prospective franchisees should be aware that this deferred compensation plan is specifically for key management employees and may not be available to all employees within a franchisee's operation.