Does Benihana make employer contributions to the 401(k) Plan, and if so, what were the contributions in 2021 and 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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 2022 and 2021.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company sponsors a qualified defined contribution retirement plan, referred to as the "401(k) Plan", for all eligible employees. This plan allows employees to defer a portion of their compensation on a pre-tax or post-tax basis, contributing to various investment options. However, employer contributions to this plan are discretionary.
Specifically, Benihana did not accrue or make any employer contributions to the 401(k) Plan in 2021 and 2022. This means that while employees could save for retirement through the plan, Benihana did not provide any matching or additional contributions to their accounts during those years.
For a prospective franchisee, this indicates that employee benefits such as 401(k) matching are not guaranteed and are subject to the company's discretion. This could impact the attractiveness of employment at a Benihana location and may influence the franchisee's approach to employee compensation and benefits packages to attract and retain staff.