Is the Hardees 401(k) Plan contributory, and if so, what does this mean for participants?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
30 as set forth in the grant agreements.
The following presents the time vesting and performance vesting Unit activity for fiscal 2025:
| Time Vesting Units | Performance Vesting Units | Total Units | Weighted- Average Grant Date Fair Value | |
|---|---|---|---|---|
| Unvest |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the company sponsors a contributory 401(k) plan. This means that employees of Hardees can choose to contribute a portion of their salary to the retirement plan on a pre-tax basis, up to the maximum amount allowed by the Internal Revenue Code.
For prospective Hardees franchisees and their employees, this is a valuable benefit. By participating in a contributory 401(k) plan, individuals can save for retirement while also reducing their current taxable income. The FDD also mentions that Hardees makes matching contributions to the 401(k) plan. During fiscal years 2025 and 2024, Hardees' matching contributions were $702 and $630, respectively.
It's important for potential franchisees to understand the specifics of the 401(k) plan, including eligibility requirements, vesting schedules, and investment options. While the FDD confirms the plan is contributory and provides the company's matching contributions for the past two fiscal years, it does not detail the specific terms and conditions of the plan. Franchisees should inquire about these details to fully understand the benefits available to themselves and their employees.