What is the purpose of the Trust utilized by Bw Premier Collection in relation to the NQP?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
of a participating employee's annual compensation.
The Company utilizes a Trust, whereby the Company makes contributions to this Trust to provide the Company a source of funds to assist in satisfying the NQP liability. It is the intention of the Company that the NQP and the Trust shall constitute an unfunded arrangement for the purpose of providing tax-deferred compensation in accordance with Title I of the Employee Retirement Income Security Act of 1974, as amended. It is also the intention of the Company to fund the Trust and have its assets invested in a manner that matches each participant's deemed investment elections under the NQP, so that the investment gains and losses of the Trust mirror the investment gains and losses credited/debited to participants' accounts. The Trust balance was $17.2 million and $17.0 million as of November 30, 2024 and 2023, respectively. Realized and unrealized gains and losses on these investments were realized gains of $0.7 million and unrealized gains of $3.1 million, for the year ended November 30, 2024, and were realized gains o
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company utilizes a Trust to provide a source of funds to assist in satisfying the liability associated with its Nonqualified Deferred Compensation Plan (NQP). The NQP is a plan in which key management employees, selected by the Board of Directors, can participate. This plan allows participating employees to defer a percentage of their annual salaries and incentive compensation.
Bw Premier Collection contributes to the NQP in two ways: first, a non-discretionary contribution of 3% of the employee's compensation each pay period, and second, an annual discretionary contribution of up to 9% of the employee's annual compensation, as determined by the Board of Directors. The company intends for the NQP and the Trust to be an unfunded arrangement for tax-deferred compensation, in accordance with the Employee Retirement Income Security Act of 1974.
Furthermore, Bw Premier Collection aims to invest the Trust's assets in a manner that mirrors each participant's investment elections under the NQP. This means the investment gains and losses of the Trust should reflect the gains and losses credited or debited to the participants' accounts. As of November 30, 2024, the Trust balance was $17.2 million, and as of November 30, 2023, it was $17.0 million. The realized and unrealized gains on these investments for the year ended November 30, 2024, were $0.7 million and $3.1 million, respectively. For the year ended November 30, 2023, the realized gains were $0.3 million, and the unrealized gains were $0.7 million. These gains and losses are recognized in the Consolidated Statements of Revenues and Expenses.