What was the phantom unit vesting for Aplus at the end of December 31, 2021?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Number of common units at December 31, 2021 | 83,670,950 |
|---|---|
| Phantom unit vesting | 383,815 |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the phantom unit vesting was 383,815 at the end of December 31, 2021. Phantom units are a form of compensation Aplus uses for its employees and non-employee directors. These units vest over time, specifically 60% after three years and the remaining 40% after five years.
These phantom units provide the recipients the right to receive distributions even before they are fully vested. The fair value of these units is determined by the market price of Aplus's common units on the date they are granted. This value is then amortized over the vesting period of five years using the straight-line method.
Understanding the vesting schedule and the total number of outstanding phantom units can give a prospective franchisee insight into the potential dilution of equity and the overall financial health and compensation strategies of Aplus. Reviewing these figures over several years, as presented in the FDD, can reveal trends and provide a more comprehensive understanding.