Are employee contributions to the Apricot Lane 401(k) Profit Sharing Plan vested, and if so, when?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company has a 401(k) Profit Sharing Plan covering its regular full-time employees who meet specific eligibility requirements outlined in the Plan summary. Employees contribute to the plan at their discretion, not to exceed the maximum amounts stated in the Plan summary or by Federal law. Employee contributions are fully vested at the time the contributions are made. The Company made no employer contributions for the years ending December 31, 2023 and 2022.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, employee contributions to the company's 401(k) Profit Sharing Plan are fully vested at the time the contributions are made. This means that employees have full ownership of their contributions from the moment they are deposited into the plan.
This is a significant benefit for employees of Apricot Lane, as they do not have to wait a certain period of time to gain ownership of their contributions. Immediate vesting is an attractive feature for prospective employees and can aid in employee retention.
The FDD also notes that the company made no employer contributions to the plan for the years ending December 31, 2023, and 2022. This means that while employees can contribute to the 401(k) plan, Apricot Lane did not match or add to those contributions during those years. A prospective franchisee should inquire whether Apricot Lane intends to make employer contributions in the future, as this could impact the overall attractiveness of the benefit.