Who administers the stock option plans for Auntie Annes' Parent company?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
The Board of Directors of the Parent (the "Board") approved the 2022 Stock Option Plan (the "2022 Plan") in the fiscal year ended December 25, 2022. The Parent issues equity incentive grants under the 2022 Plan. Prior to the 2022 Plan, equity incentive grants were issued under the 2013 Stock Option Plan and 2002 Incentive Stock Plan (collectively with the 2022 Plan, the "Plans"). The 2022 Plan authorizes the granting of options to purchase common stock of the Parent and was established to attract and retain eligible employees, directors, and consultants and to provide an additional incentive to each eligible employee, director, and consultant to work to increase the value of the Parent's common stock. The Plans are administered by the Board. The Board has the authority to determine the amount of options granted to any individual, the dates on which each option will become exercisable, and the exercise price of all options subject to certain limitations in the Plans. As of December 31, 2023, there were 7,763 options available for issuance under the 2022 Plan.
The option vesting periods range from immediate vesting to a five-year vesting period, with accelerated vesting in the event of a change in control under certain circumstances, as defined in the Plans. In addition, certain options have vesting requirements based upon achieving certain operating results. The options expire 10 years from the date of grant or in the event of a change in control under certain circumstances, as defined in the Plans.
The weighted average grant date fair value of options granted during the fiscal years ended December 31, 2023 and December 25, 2022 was $105.71 and $87.99, respectively, per option. The Parent reduced the exercise prices of unvested outstanding options and paid out bonuses on vested outstanding options to make all option holders whole in conjunction with the 2023 Distributions.
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the Board of Directors of the Parent company administers the stock option plans. The Board holds the authority to determine the number of options granted to individuals, the dates on which each option becomes exercisable, and the exercise price of all options, subject to certain limitations outlined in the Plans. As of December 31, 2023, there were 7,763 options available for issuance under the 2022 Plan.
The stock option plans, including the 2022 Stock Option Plan, the 2013 Stock Option Plan, and the 2002 Incentive Stock Plan, are designed to attract and retain eligible employees, directors, and consultants. These plans also aim to incentivize these individuals to increase the value of the Parent's common stock. The vesting periods for these options can range from immediate vesting to a five-year vesting period, with potential accelerated vesting in the event of a change in control under specific circumstances defined in the Plans. Some options also have vesting requirements tied to achieving certain operating results.
The options generally expire 10 years from the date of grant, but this can also be affected by a change in control as defined in the Plans. The weighted average grant date fair value of options granted during the fiscal years ended December 31, 2023, and December 25, 2022, was $105.71 and $87.99, respectively, per option. In 2023, the Parent reduced the exercise prices of unvested outstanding options and paid out bonuses on vested outstanding options to make all option holders whole in conjunction with the 2023 Distributions.