When can Carvel employees participate in the company's 401(k) Plan?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
h graded vesting on a straight-line basis over the requisite service period for each separately vesting portion of the award. The total compensation expense related to unvested awards not yet recognized in the financial statements is $5,059. This amount will be recognized as expense through 2029.
The Company administers substantially all operational activities on behalf of the Parent, and as a result, stockbased compensation expense is recorded in the consolidated financial statements
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the company sponsors a 401(k) Plan. Employees of Carvel can participate in the 401(k) Plan the first day of the month following their hire date, provided they are age 21 or older.
Carvel's contributions to the 401(k) Plan are based on a percentage of the employee's contributions, and these employer contributions are immediately vested, meaning the employee has full ownership of them right away. For the fiscal years ending December 29, 2024, and December 31, 2023, Carvel's employer contributions to the 401(k) Plan were $3,126 and $3,205, respectively.
For a prospective Carvel franchisee, this information is relevant in understanding the benefits offered to employees. Offering a 401(k) plan can be a valuable tool for attracting and retaining employees, as it provides a means for them to save for retirement. The immediate vesting of employer contributions is an attractive feature that may help in employee recruitment and satisfaction. Franchisees should factor in these potential benefits and costs when considering their overall employee compensation and benefits package.