What was the weighted average life of outstanding Annex Brands options as of September 30, 2023?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| No. of Options | Price Range Per Share | Weighted Exercis | - | |
|---|---|---|---|---|
| Outstanding at September 30, 2021 | 675 | $83.00 - $174.00 | $ | 160.81 |
| Exercised | (555) | 83.00 - 174.00 | 157.96 | |
| Outstanding at September 30, 2022 | 120 | 174.00 | 174.00 | |
| Outstanding at September 30, 2023 | 120 | 174.00 | 174.00 | |
| Outstanding at September 30, 2024 | 120 | $ 174.00 | $ | 174.00 |
As of September 30, 2023, the weighted average life of outstanding options was 1.01 years, and there were 120 exercisable options with a weighted average exercise price of $174. As of September 30, 2024 and 2023, all options
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, as of September 30, 2023, the weighted average life of outstanding options was 1.01 years. There were 120 exercisable options with a weighted average exercise price of $174. All options were vested as of both September 30, 2024, and September 30, 2023.
For a prospective Annex Brands franchisee, this information is relevant in understanding the company's financial structure and how it compensates its employees and executives. Stock options are a form of compensation that gives the recipient the right to purchase company stock at a specified price (the exercise price) within a certain timeframe. The weighted average life of these options indicates how long, on average, these options are expected to remain outstanding before being exercised or expiring.
The fact that all options were vested as of September 30, 2023, and 2024 means that the recipients had the immediate right to exercise these options. The weighted average exercise price of $174 provides insight into the potential cost for option holders to acquire company stock. However, it is important to note that this information pertains to Annex Brands's overall financial structure and may not directly impact the operations or financial obligations of a new franchisee. Franchisees should focus more on the franchise-specific fees, royalties, and operational costs outlined elsewhere in the FDD.