How are Aunt Millies Bakeries' contributions to the union employee groups' 401(k) plan determined?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company maintains two defined contribution 401(k) plans covering substantially all administrative employees as well as all union employee groups. Company contributions to the administrative employees' 401(k) plan are discretionary. Company contributions to the union employee groups' 401(k) plan are determined by the union contracts. Expense related to these plans are accrued and charged to operations when incurred.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the company maintains two defined contribution 401(k) plans. These plans cover substantially all administrative employees and all union employee groups.
The document specifies that Aunt Millies Bakeries' contributions to the administrative employees' 401(k) plan are discretionary, meaning the company can decide how much to contribute each year. However, the contributions to the union employee groups' 401(k) plan are determined by the union contracts. This means that the specific terms of the union agreements dictate the amount and conditions of Aunt Millies Bakeries' contributions to the union employees' retirement savings.
For a prospective franchisee, this information is relevant in understanding the overall financial obligations of Aunt Millies Bakeries. While franchisees are not directly involved in these retirement plans, the financial health and stability of the franchisor can impact the entire franchise system. Knowing that union contracts dictate these contributions provides a level of predictability, as these obligations are negotiated and agreed upon in advance.