When can Cinnabon employees participate in the company's 401(k) Plan?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
nizes compensation expense for awards with 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
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the company sponsors a 401(k) Plan. Employees are eligible to participate in the 401(k) Plan on the first day of the month following their hire date, provided they are age 21 or older.
The document also states that Cinnabon's contributions to the 401(k) plan are based on a percentage of the employee's contributions and are immediately vested. For the fiscal years ended December 29, 2024, and December 31, 2023, employer contributions to the 401(k) Plan were $3,126 and $3,205, respectively.
For a prospective Cinnabon 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, which is crucial for the successful operation of a Cinnabon franchise. The immediate vesting of employer contributions is an attractive feature for employees, potentially increasing participation in the plan.