Are Buildingstars' matching contributions to its 401(k) plan mandatory or discretionary?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
------------------|--|--| | | 2024 | 2023 | 2022 | | | | Revenue Recognized Over Time Revenue Recognized at a Point in Time | $ 80,425,159 3,192,274 $ 83,617,433 | $ 72,943,569 3,261,779 $ 76,205,348 | $ 67,634,762 2,529,434
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the company's matching contributions to its 401(k) plan are discretionary. This means that Buildingstars is not obligated to provide matching contributions, and the decision to do so is at the company's discretion.
For prospective employees or franchisees considering employment with Buildingstars, this implies that while a 401(k) plan is available, matching contributions from Buildingstars should not be assumed as a guaranteed benefit. The amount of these contributions can vary from year to year, or Buildingstars may choose not to contribute at all in a given year.
The FDD also provides the actual matching contributions made by Buildingstars in the past three years. In 2024, the matching contributions were $240,605. In 2023, the contributions totaled $126,500, and in 2022, they were $103,925. These figures show that the level of Buildingstars' contribution can fluctuate significantly from year to year, reinforcing the discretionary nature of the benefit.