Are the foreign NOLs for Bw Premier Collection subject to expiration?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
such assets are not more likely than not to occur.
As of November 30, 2024, the Company has foreign NOL carryforwards of $15.5 million and U.S. FTC carryforwards of $0.6 million. Of the $15.5 million in foreign NOLs, $1.9 million is subject to expiration beginning in 2029, while the remaining $13.6 million is not subject to expiration and will carry forward indefinitely. The FTC carryforwards were generated in the years ended November 30, 2019, and 2020, in the amounts of $0.2 million and $0.4 million, respectively, and will expire in the ye
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, a portion of the company's foreign net operating losses (NOLs) are subject to expiration. As of November 30, 2024, Bw Premier Collection had $15.5 million in foreign NOL carryforwards. Of this amount, $1.9 million is subject to expiration beginning in 2029. The remaining $13.6 million is not subject to expiration and will carry forward indefinitely.
In simpler terms, this means that Bw Premier Collection can use these NOLs to offset future taxable income, potentially reducing its tax liability. However, $1.9 million of these losses must be used before 2029, or they will expire and no longer be available to offset income. The remaining $13.6 million can be carried forward indefinitely, providing a long-term tax benefit.
For a prospective franchisee, this information is unlikely to have a direct impact on their operations. However, it provides insight into the financial management and tax planning strategies of Bw Premier Collection. Understanding the company's approach to managing its tax liabilities can be a useful factor when evaluating the overall financial health and stability of the franchise system.