As of November 30, 2024, what is the amount of U.S. FTC carryforwards that Bw Premier Collection has?
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, as of November 30, 2024, the company has U.S. Federal Trade Commission (FTC) carryforwards totaling $0.6 million. These carryforwards originated in the tax years ending November 30, 2019 ($0.2 million) and November 30, 2020 ($0.4 million). These amounts will expire in the years ending November 30, 2029, and November 30, 2030, respectively.
These FTC carryforwards represent credits that Bw Premier Collection has earned but has not yet been able to use to reduce its tax liability. These credits can be carried forward to future tax years, providing a potential benefit by lowering future tax obligations. However, the carryforwards are subject to expiration, meaning that if they are not used within the specified time frame, the company will lose the ability to claim them.
For a prospective franchisee, this information provides insight into Bw Premier Collection's financial management and tax planning strategies. The existence of FTC carryforwards suggests that the company has been proactive in identifying and utilizing available tax benefits. However, the limited lifespan of these carryforwards also highlights the importance of efficient tax planning to ensure that the company can fully utilize these credits before they expire. Franchisees may want to inquire about Bw Premier Collection's strategies for managing and utilizing its tax attributes to maximize their value.