What are the eligibility requirements for employees to participate in the Gold Star profit sharing plan?

According to Gold Star's 2025 Franchise Disclosure Document, the company has a qualified profit sharing plan with a 401(k) provision that covers all employees who have completed one year of service and have attained the age of 21. Gold Star matches a participant's contribution up to 50% of the contribution, limited to 6% of a participant's compensation. The document states that the company may also make discretionary contributions to the plan and that, by its nature, the plan is fully funded.

For a prospective franchisee, this means that if they hire employees, they will need to ensure that their employees meet these eligibility requirements to participate in the profit sharing plan. This is a benefit that can be offered to employees to attract and retain talent. The matching contribution from Gold Star is a significant benefit, as it can help employees save for retirement.

It is important for prospective franchisees to understand the terms of the profit sharing plan and how it works. They should also be aware of the potential costs of the plan, including the matching contributions that Gold Star makes. Understanding these details will allow the franchisee to accurately budget for employee compensation and benefits.