Who is selected to participate in the Nonqualified Deferred Compensation Plan (NQP) at Bw Premier Collection?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
Plan ("NQP") and Restricted Rabbi Trust Investments
The Company has a NQP in which key management employees of the Company, as determined by the Board of Directors, are selected to participate. The NQP is a defined contribution plan, in which participating employees may defer a percentage of their annual salaries and a percentage of any incentive compensation into the NQP. The Company contributes: (i) a non-discretionary contribution of 3% of a participating employee's compensation each pay period, and (ii) an annual discretionary contribution, as determined by the Board of Directors, up to 9% 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 Nonqualified Deferred Compensation Plan (NQP) is available to specific individuals within the company. Key management employees are selected to participate in the NQP, with the Board of Directors determining the eligible employees.
This NQP is structured as a defined contribution plan, allowing participating employees to defer a percentage of their annual salaries and incentive compensation. In addition to employee deferrals, Bw Premier Collection contributes to the plan. The company provides a non-discretionary contribution of 3% of the employee's compensation each pay period. Furthermore, Bw Premier Collection may make an annual discretionary contribution of up to 9% of the employee's annual compensation, as determined by the Board of Directors.
Bw Premier Collection utilizes a Trust to support the NQP liability, contributing funds to this Trust. The intention is for the NQP and the Trust to be an unfunded arrangement, designed to provide tax-deferred compensation in compliance with the Employee Retirement Income Security Act of 1974. The assets within the Trust are invested to mirror each participant's investment elections under the NQP, aligning investment gains and losses with 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.