Are Chesters' matching contributions to the retirement plan vested immediately?

According to Chesters's 2025 Franchise Disclosure Document, the company offers retirement benefits to certain employees through a shared services agreement with a related party. Chesters matches employee contributions based on a percentage of the salary contributed by the participants. The document specifies that Chesters' matching contributions are fully vested at the time of the match.

This means that employees who participate in the retirement plan immediately own the matching contributions made by Chesters. Vesting refers to when an employee has full rights to employer-contributed funds in a retirement plan. Immediate vesting is a favorable benefit for employees, as they do not have to wait a certain period to gain ownership of the matching funds.

For prospective franchisees, this information is relevant as it provides insight into the employee benefits offered by Chesters. While franchisees are not employees, they may be responsible for managing employees who are eligible for these benefits. Understanding the vesting schedule can help franchisees attract and retain employees by offering competitive retirement benefits. In 2024, Chesters contributed $31,591 to the plan, and in 2023, they contributed $42,828.