What was the total number of options for Batteries Plus Bulbs at the end of 2022?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
As of December 31, 2023 and 2022, under the 2016 Plan, a total of approximately 100,810 and 110,643 performance-based options were outstanding, respectively, which vest upon an achievement of a realization value. As this value has not been achieved and management is not certain that it is probable as of December 31, 2023, no expense has been recognized for those awards.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, as of December 31, 2022, there were approximately 110,643 performance-based options outstanding under the 2016 Equity Incentive Plan. These options vest upon achieving a realization value, but since this value had not been achieved as of that date, no expense had been recognized for these awards.
Batteries Plus Bulbs' 2016 Equity Incentive Plan (2016 Plan) was created to provide certain management and key employees with incentive-based awards. The options available under this plan are dependent on service and performance-based conditions. Performance-Based Options vest and become exercisable with respect to 20% per year of the total number of performance target options held by the eligible employee over a five-year period if the eligible employee remains continuously employed by Batteries Plus Bulbs throughout the defined service period, a performance-based target of a pre-determined amount of value is achieved, and an event occurs that includes a distribution of cash to the majority shareholder at a pre-determined amount.
Service-Based Options vest annually with respect to 20% of the service-based options held by the employee if the eligible employee remains continuously employed by Batteries Plus Bulbs over their defined service period. The fair value of each stock option grant was determined using the Black-Scholes options-pricing model in the year of the grant.
For a prospective franchisee, this information may not have a direct impact unless they are also an employee or part of the Batteries Plus Bulbs management team eligible for these stock options. However, it provides insight into how Batteries Plus Bulbs incentivizes its employees and management, which can indirectly affect the overall performance and stability of the franchise system.