What is the range of compensation that eligible employees can defer under Bumble Roofing's 401(k) plan?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2025 | $ 1,007,629 |
|---|---|
| 2026 | 1,106,558 |
| 2027 | 851,811 |
| 2028 | 873,841 |
| 2029 | 896,459 |
| Thereafter | 1,719,868 6,456,166 |
| Less: present value discount | (814,754) $ 5,641,412 |
NOTE 9 – RETIREMENT PLAN
The Company has a salary deferral plan under Section 401(k) of the Internal Revenue Code. The plan allows eligible employees to defer a portion of their compensation ranging from 1% to 15%. Such deferrals accumulate on a tax-deferred basis until the employee withdraws the funds. The Company, at its option, may match a portion of the employees' contribution. The Company made contributions of approximately $238,000, $252,000
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the company offers a 401(k) salary deferral plan, allowing eligible employees to defer a portion of their compensation. The allowable deferral range is between 1% and 15% of the employee's compensation. These deferrals accumulate on a tax-deferred basis, meaning employees do not pay income taxes on the deferred amount until they withdraw the funds in retirement.
In addition to employee deferrals, Bumble Roofing has the option to match a portion of the employees' contributions. The company's contributions to the plan were approximately $238,000 in 2024, $252,000 in 2023, and $191,000 in 2022. This matching contribution is a significant benefit for employees, as it provides additional funds for retirement savings.
For a prospective Bumble Roofing franchisee, this information is relevant when considering the costs and benefits of hiring employees. Offering a 401(k) plan with a matching contribution can help attract and retain qualified employees. Understanding the potential costs of these contributions, as demonstrated by the company's previous contributions, is crucial for financial planning. Franchisees should inquire about the specific eligibility requirements and matching formulas to fully understand the implications for their business and employees.