Does Checkersrallys match employee contributions to its qualified defined contribution plan?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
expected stock-compensation cost for the next five years related to unvested service-based units not yet recognized is as follows:
| Fiscal year ending | A | mount |
|---|---|---|
| 2024 | $ | 393 |
| 2025 | 393 | |
| 2026 | 393 | |
| 2027 | 401 | |
| 2028 | 262 | |
| Total | $ | 1,842 |
Other Compensation
The Company sponsors a qualified defined contribution plan covering al
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company sponsors a qualified defined contribution plan for all non-director employees. However, Checkersrallys did not match any employee contributions to this plan during the periods from June 17, 2023, through January 1, 2024, and January 3, 2023, through June 16, 2023, as well as for the years ended January 2, 2023, and January 3, 2022. The expenses associated with this plan were less than $0.1 million in each of these periods.
For a prospective franchisee, this means that while Checkersrallys offers a retirement savings plan, the company does not contribute any matching funds to employee contributions. This could be a factor in attracting and retaining employees, as many companies offer matching contributions as part of their benefits package. Franchisees should consider this when evaluating the overall compensation and benefits they will offer to their employees.
It's important for potential franchisees to understand the full scope of employee benefits offered, as these costs can impact the overall profitability of the franchise. While the absence of matching contributions may reduce expenses, it could also affect employee morale and turnover. Franchisees may want to inquire further about the details of the retirement plan and whether there are any plans to introduce matching contributions in the future.