What was the total liability for Best Western's NQP as of November 30, 2023?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
and unrealized gains and losses on these investments were realized gains of $0.3 million and unrealized gains of $0.7 million, for the year ended November 30, 2023, and were realized gains of $0.5 million and unrealized losses of $2.5 million, for the year ended November 30, 2022, and are recognized in net realized and unrealized gains (losses) on investments, interest and dividend income, and interest expense in the Consolidated Statements of Revenues and Expenses.
The Company's expense related to the NQP was $1.3 million (including a liability increase associated with net investment gains of $1.0 million as of November 30, 2023) and $1.6 million (including a liability reduction associated with net investment losses of $2.0 million as of November 30, 2022) for the years ended November 30, 2023 and 20
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the company had a Non-Qualified Plan (NQP). As of November 30, 2023, Best Western's total liability for the NQP was $17.3 million. Of this amount, $3.9 million was the current portion, which was included in accounts payable and accrued liabilities in the Consolidated Statements of Financial Position.
The NQP liability represents Best Western's obligations to key executives under a long-term incentive plan. The expense related to the NQP for the year ended November 30, 2023, was $1.3 million, which included a liability increase associated with net investment gains of $1.0 million. This expense is included in compensation, taxes, and benefits in the Consolidated Statements of Revenues and Expenses.
Prospective franchisees should note that this liability does not directly impact their franchise operations. However, it provides insight into Best Western's financial obligations and how it compensates its executives. Understanding the company's financial health and compensation structure can be valuable for franchisees when assessing the overall stability and management of the organization.