As of December 31, 2023 and 2022, were the Class B units vested for the Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
BPF Holding Corporation wholly owns the Class A Membership interest of Beggars Pizza Franchise, LLC. In accordance with the operating agreement (the "Agreement") of the Company, the Company issued Class B and C member units as profits interest units. Pursuant to the Agreement, Class B units vest only upon the achievement of certain hurdles, and Class C units are immediately vested. As of December 31, 2023 and 2022, Class B units are not vested. For the years ended December 31, 2023 and 2022, there was no compensation expense related to the issuance of the Class B and C units.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the Class B units were not vested as of December 31, 2023, and December 31, 2022. The document specifies that these units vest only upon achieving certain performance hurdles.
Class A Membership interest of Beggars Pizza Franchise, LLC is wholly owned by BPF Holding Corporation. The company issued Class B and C member units as profits interest units. Class C units are immediately vested.
This information is relevant to prospective franchisees as it clarifies the equity structure and vesting conditions within the Beggars Pizza franchise, particularly concerning the Class B units. It also explains the distribution of profits to Class A, B, and C members.