What were the employee benefits expenses for Craters & Freighters in the year ended December 31?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
. The Company recognized a gain of $15,729.
Note 9: Retirement Plan
The Company maintains a Savings Incentive Match Plan for Employees (SIMPLE), whereby the Company makes a matching contribution up to 3% of electing employees' compensation upon meeting age and length of service requirements. Contributions are made at the discretion of the Board of Directors. For the years ended December 31, 2024 and 2023, the Company elected to contribute $16,166 and $6,321, respectively.
Effective January 1, 2025, the Company established a 401(k) Retirement Plan (Plan) to replace the SIMPLE IRA plan. The Plan offers pre-tax and Roth contribution options for its participants. The Plan has a QACA Safe Harbor match feature equal to 100% of the first 1% of the participant
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Craters & Freighters maintained a Savings Incentive Match Plan for Employees (SIMPLE) through December 31, 2024. The company made matching contributions up to 3% of electing employees' compensation, provided they met age and length of service requirements. For the years ended December 31, 2024 and 2023, Craters & Freighters elected to contribute $16,166 and $6,321, respectively.
Effective January 1, 2025, Craters & Freighters established a 401(k) Retirement Plan to replace the SIMPLE IRA plan. The new plan offers pre-tax and Roth contribution options for participants and includes a QACA Safe Harbor match feature. This feature matches 100% of the first 1% of the participant's compensation plus 50% of the next 5% of the participant's compensation.
The 2025 FDD does not explicitly state the total employee benefits expenses for the year ended December 31, 2025. However, it does provide details on the contributions made under the SIMPLE plan for 2023 and 2024, as well as the structure of the new 401(k) plan implemented in 2025. To determine the exact employee benefits expenses for 2025, a prospective franchisee should request this information directly from Craters & Freighters.