When did Stretch Zone form its 401(k) Plan?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
eptember 1, 2023, as additional compensation of the celebrity and was included in the celebrity endorsement (see Note F). The value of the unvested Class C units amounted to approximately $1,733,000.
NOTE K - DEFINED CONTRIBUTION PLAN
Effective April 1, 2022, the Company formed a 401(k) Plan (the "Plan"), under the provisions of Section 401(a) of the Internal Revenue Code, to provide employees of the Company with retirement benefits. The Plan covers all eligible employees of the Company. All full-time employees who are twenty-one years of age become eligible to participate in the Plan when they complete twelve months and 1,000 hours of continuous service during the Plan year.
The Company may contribute to th
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the company established a 401(k) plan effective April 1, 2022. This plan, referred to as "the Plan", is under Section 401(a) of the Internal Revenue Code and is designed to provide retirement benefits to Stretch Zone's employees.
The 401(k) plan is available to all eligible employees of Stretch Zone. To be eligible, full-time employees must be at least twenty-one years old and have completed twelve months with 1,000 hours of continuous service during the plan year.
The document also states that Stretch Zone has the option to contribute to the plan at its discretion. For the years ending December 31, 2023, and 2022, Stretch Zone incurred administrative expenses and made contributions on behalf of its employees totaling $144,135 and $87,735, respectively. This indicates the company has been actively contributing to the plan since its inception.