What is the Belocal company's matching contribution formula for employee 401(k) elective deferral contributions?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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4. 401(k) Savings Plan
The Company sponsors a defined contribution 401(k) plan covering all eligible employees. To participate in the plan for the purposes of 401(k) elective deferral contributions, an employee must be 18 years of age or older and must have completed 90 days of service. Participants can elect to contribute through salary deductions a maximum of $23,500, $23,000, and $22,500 for the calendar years ending December 31, 2025, 2024, and 2023, respectively. The Company will contribute a matching contribution equal to 100% of the employee 401(k) elective deferral contributions which are not over 3% of the employee's pay, plus 50% of the employee 401(k) elective deferral contributions which are over 3% of the employee's pay, but are not over 5% of the employee's pay. Vesting of matching contributions occurs over the period of 6 years. Employer contributions to the plan during the years ended June 30, 2025, 2024 and 2023, were
Source: Item 23 — RECEIPTS (FDD pages 71–242)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the company sponsors a 401(k) savings plan for all eligible employees. To be eligible for 401(k) elective deferral contributions, an employee must be at least 18 years old and have completed 90 days of service. Participants can contribute a maximum of $23,500 for the calendar year ending December 31, 2025. The maximum contribution amounts for the calendar years ending December 31, 2024, and 2023 were $23,000 and $22,500, respectively.
Belocal will match 100% of employee 401(k) elective deferral contributions up to 3% of the employee's pay. Additionally, Belocal will contribute 50% of the employee's 401(k) elective deferral contributions that exceed 3% of their pay, but only up to 5% of their pay. This means that if an employee contributes 5% of their pay, Belocal's total matching contribution would be 4% of the employee's pay (3% matched at 100% plus 2% matched at 50%).
The vesting of Belocal's matching contributions occurs over a 6-year period. Employer contributions to the plan totaled $154,390 for the year ended June 30, 2025, $153,801 for the year ended June 30, 2024, and $173,100 for the year ended June 30, 2023.