As a trustee of a 401(k) plan, what duty do Basecamp Fitness franchisees have regarding the plan's management?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
401(k) PLAN RESPONSIBILITIES:
As the trustee of a 401(k) plan, you have a duty to manage the plan so that it benefits all employees not just the owners and officers of the Corporation.
I verify that I will use this 401(k) as a long-term savings vehicle for all employees of the business and agree that I will encourage all eligible employees to participate.
I verify my understanding that when company stock is offered for purchase within the 401(k) plan, the offering must be available for all eligible employees.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, if a franchisee acts as the trustee of a 401(k) plan, they have a fiduciary duty to manage the plan in a way that benefits all employees, not just the owners and officers of the corporation. This means that the franchisee must make decisions that are in the best interest of all participants in the 401(k) plan.
Basecamp Fitness franchisees must also encourage all eligible employees to participate in the 401(k) plan as a long-term savings vehicle. Furthermore, if company stock is offered for purchase within the 401(k) plan, the offering must be available to all eligible employees, ensuring equitable access to investment opportunities within the plan.
To avoid any conflict of interest, franchisees must defer paying themselves compensation until the company is actively engaged in buying or selling goods and/or services. Compensation should come from revenue generated by the business, not from the proceeds of the sale of employer stock to the 401(k). These guidelines ensure that the franchisee's personal financial interests do not compromise their fiduciary responsibilities to the 401(k) plan participants.