Under what circumstances is deferred compensation distributable in cash from the Bojangles nonqualified deferred compensation plan?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company maintains a rabbi trust to invest compensation deferred under our nonqualified deferred compensation plan and fund future deferred compensation obligations. The rabbi trust is subject to creditor claims in the event of insolvency, but the assets held in the rabbi trust are not otherwise available for general corporate purposes. This plan allows eligible participants to defer compensation. Deferred compensation, net of accumulated earnings and/or losses on the participant-directed
investment options, is distributable in cash at employee specified dates or upon retirement, death, disability or termination from the plan.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the company maintains a nonqualified deferred compensation plan, using a rabbi trust to invest compensation deferred under the plan and fund future obligations. This plan allows eligible participants to defer compensation.
Specifically, deferred compensation, after accounting for accumulated earnings or losses on participant-directed investment options, is distributable in cash under certain circumstances. These circumstances include employee-specified dates, retirement, death, disability, or termination from the plan.
It's important to note that the rabbi trust is subject to creditor claims in the event of insolvency, which means that while the assets are not available for general corporate purposes, they are not entirely protected from the company's creditors. Franchisees should be aware of these conditions and consider the potential risks and benefits associated with the deferred compensation plan.