What are the eligibility requirements for Lees Famous Recipe employees to participate in the 401(k) retirement plan?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
2028 | 700,000 $ 39,310,812 |
Restrictive Covenants:
The note payable to the financing company includes various restrictive covenants which include a senior leverage ratio, a fixed charge coverage ratio, and capital expenditure ratio. The Company was in compliance with all restrictive covenants at December 31, 2024 and 2023.
NOTE 8 - EMPLOYEE BENEFIT PLAN
The Company is participating in a multi-employer 401(k) retirement plan. Employees who are 21 years or older and have comp
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 FDD, Lees Famous Recipe employees are eligible to participate in the company's multi-employer 401(k) retirement plan if they are 21 years or older and have completed at least six months of service. Eligible employees can defer up to the maximum amount allowed by the Internal Revenue Service.
Lees Famous Recipe may also make matching and discretionary contributions to the plan. For the year ending December 31, 2024, the employer contributions totaled $244,669. This indicates the company is actively contributing to its employees' retirement savings.
Prospective franchisees should note that this benefit applies to employees of the company itself, not necessarily to employees of individual franchise locations. Franchisees should inquire whether they are required or able to offer a similar 401(k) plan or other retirement benefits to their own employees.