Is the matching of deferred compensation under Brightstar Care's defined contribution retirement plan mandatory or discretionary?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ction of these notes.
Notes to Consolidated Financial Statements
7. Retirement Benefits
The Company has a defined contribution retirement plan under which participants may elect to defer a portion of their compensation for which an amount may be matched at the discretion of the Company. Substantially all of the Company's full-time employees who have met the provisions of the plan are eligible to participate. The employer contrib
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the company maintains a defined contribution retirement plan that allows participants to defer a portion of their compensation. However, whether Brightstar Care matches these deferrals is not mandatory but remains at the company's discretion.
This means that while employees can save for retirement through this plan, there's no guarantee Brightstar Care will contribute additional funds to their accounts. The amount of the employer contribution to the plan was $406,574 for the year ended December 29, 2024, and $355,516 for the year ended December 31, 2023.
For a prospective Brightstar Care franchisee, this information is relevant when considering the benefits offered to employees. The discretionary nature of the matching contributions provides Brightstar Care with flexibility in managing its expenses, but it also means employees may not receive this benefit consistently. Franchisees may want to inquire about the historical trends and criteria Brightstar Care uses to determine matching contributions to better understand the potential value of this benefit for their employees.