Does Golden Krust Caribbean Restaurant maintain a 401(k) plan for its union employees?
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 the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant's Bakery division maintains a 401(k) plan, but it is exclusively for non-union employees. The document specifies that the Company can also adopt these provisions.
Eligible non-union employees can contribute to the 401(k) plan up to the current applicable limit. Golden Krust Caribbean Restaurant provides a safe harbor matching contribution, matching 100% of employee salary deferrals up to 3% of their compensation, and then 50% of deferrals between 3% and 5%. These safe harbor contributions are fully vested, meaning the employee has full ownership of them immediately.
The 401(k) expenses for Golden Krust Caribbean Restaurant were approximately $52,365 for the year ending December 31, 2023, and $50,794 for the year ending December 31, 2022. This information is relevant for prospective franchisees as it provides insight into the employee benefits offered by the company to its non-union staff, and the associated costs. Franchisees may want to inquire further about benefits for union employees, if applicable, as this disclosure only addresses non-union plans.