Does Benihana have a 401(k) plan for eligible employees?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 11 – Employee Benefit Plans
Defined Contribution Retirement Plan
The Company sponsors a qualified defined contribution retirement plan (the "401(k) Plan") covering all eligible employees, as defined in the 401(k) Plan. The 401(k) Plan allows participating employees to defer the receipt of a portion of their compensation, on a pre-tax or post-tax basis, and contribute such amount to one or more investment options. Employer contributions to the plan are at the discretion of the Company. The Company did not accrue or make any employer contributions in 2023 and 2022.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana sponsors a qualified defined contribution retirement plan, referred to as the "401(k) Plan", for all eligible employees as defined within the plan itself. This plan allows participating employees to defer a portion of their compensation on either a pre-tax or post-tax basis, contributing these amounts to various investment options.
However, franchisee employees are not employees of Benihana. The FDD states that franchisees are independent contractors, not agents, partners, joint ventures, or employees of Benihana. Franchisees are the sole and exclusive employers of their own employees, responsible for all employment-related decisions, including wages, hours, benefits, and employment policies, without needing approval from Benihana.
Benihana's participation in making contributions to the plan is discretionary. Benihana did not make any employer contributions to the 401(k) plan in 2023 or 2022. This means that while the plan exists, there's no guarantee of employer matching or contributions, which can impact the overall benefit to employees. A prospective franchisee should consider that they are responsible for providing their own employee benefit plans.