What are the eligibility requirements for employees to participate in the Closet Storage Concepts 401(k) Plan?

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the company sponsors a 401(k) plan. To be eligible for this plan, employees must be at least 21 years old, have completed one year of service, and have worked 1,000 hours or more. The FDD also notes that the profit-sharing aspect of the 401(k) plan is discretionary, meaning Closet Storage Concepts is not obligated to contribute to it.

For a prospective Closet Storage Concepts franchisee, this information is relevant when considering employee benefits and compensation packages. Franchisees should understand the eligibility requirements for the 401(k) plan to effectively communicate this benefit to potential and current employees. This can aid in attracting and retaining talent, as retirement plans are often a key component of an employee's overall compensation.

It's important to note that while the FDD specifies the eligibility criteria and the discretionary nature of profit sharing, it does not detail the specific contribution amounts or the vesting schedule of the plan. A prospective franchisee should inquire about these details to fully understand the 401(k) plan's benefits and obligations. Understanding the full scope of the retirement plan will help in budgeting and managing employee-related expenses.