Does Golden Krust Caribbean Restaurant allow the Company to adopt the provisions of its 401(k) plan?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2024 | $ | 85,664 | |
|---|---|---|---|
| 2025 | 96,013 | ||
| 2026 | 106,362 | ||
| 2027 | 50,692 | ||
| 2028 | 6,000 | ||
| Thereafter | 138,000 | ||
| Total Undiscounted Cash Flows | 482,731 | ||
| Less: Present Value Discount | (46,931) | ||
| Total Lease Liabilities | $ | 435,800 |
NOTE 11 EMPLOYEE RETIREMENT PLANS
Bakery maintains a 401(k) plan for its non-union employees and also allows the Company to adopt its provisions. Eligible employees can contribute to the plan up to the current applicable limit. The Company provides a safe harbor matching contribution of 100% of the employees' salary deferrals that do not exceed 3% of the employees' compensation plus 50% of the
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, Golden Krust Caribbean Bakery (Bakery) maintains a 401(k) plan for its non-union employees and allows the Company to adopt its provisions. This means that Golden Krust Franchising, Inc. can participate in the 401(k) plan offered by its related company, Golden Krust Caribbean Bakery.
Eligible employees of Golden Krust Franchising, Inc. can contribute to the 401(k) plan up to the current applicable limit. The company provides a safe harbor matching contribution, matching 100% of employee salary deferrals that do not exceed 3% of the employee's compensation, plus 50% of deferrals between 3% and 5% of their compensation. These safe harbor contributions are 100% vested, meaning employees have full ownership of these contributions immediately.
The 401(k) expense for Golden Krust Franchising, Inc. was approximately $52,365 for the year ended December 31, 2023, and $50,794 for the year ended December 31, 2022. This indicates the cost to the company for providing the matching contributions to its employees' 401(k) plans. This benefit can be a valuable tool for attracting and retaining employees, as it provides a means for them to save for retirement with the added incentive of company matching contributions.