Are Epcon Communities' matching contributions to the salary deferral plan discretionary?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
tware with a net book value of $108,425 was transferred to a related party under common control, with equal consideration to be exchanged in 2025. The company has recorded the receivable from the related party within due from related parties on the Consolidated Balance Sheet.
Profit Sharing Plan
The Company's employees may participate in the salary deferral plan of Epcon (the Plan). The Plan, covering substantially all full-time employees, allows p
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the company's matching contributions to its employee salary deferral plan are discretionary. The plan, which covers substantially all full-time employees, allows participants to contribute certain amounts on a pre-tax basis. Epcon Communities retains the discretion to make matching contributions as specified in the plan agreement.
In 2024, Epcon Communities made safe harbor contributions of $61,703, while in 2023, these contributions amounted to $70,210. These safe harbor contributions are distinct from the discretionary matching contributions, indicating a base level of contribution alongside the potential for additional discretionary amounts.
For a prospective franchisee, this means that while Epcon Communities employees can participate in a salary deferral plan, the extent to which Epcon Communities matches these contributions is not guaranteed and can vary. Franchisees should consider this when evaluating employee benefits and compensation packages, as the discretionary nature of the matching contributions introduces an element of uncertainty. Understanding the specifics of the Plan agreement is crucial for both the franchisee and their employees to manage expectations regarding retirement savings benefits.