In what years were the FTC carryforwards generated for Bw Premier Collection?
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, the U.S. Federal Tax Credit (FTC) carryforwards were generated in the fiscal years ending November 30, 2019, and November 30, 2020. The amounts generated were $0.2 million and $0.4 million, respectively. These FTC carryforwards are set to expire in the years ending November 30, 2029, and November 30, 2030, respectively.
For a prospective Bw Premier Collection franchisee, this information is relevant because it provides insight into the franchisor's financial management and tax strategies. The existence of FTC carryforwards suggests that Bw Premier Collection has previously paid foreign taxes that can be used to offset U.S. tax liabilities, potentially reducing the company's overall tax burden.
However, the document also mentions that Bw Premier Collection has provided a valuation allowance against net deferred tax assets for certain foreign loss entities, indicating that the realization of these assets is not considered highly likely. This highlights the complexities of international tax planning and the potential for deferred tax assets to not fully materialize. Franchisees should be aware that these tax matters are subject to change based on evolving tax laws and the company's financial performance.