What was the amount of stock-based compensation for Benjamin Franklin Plumbing in 2022?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
----------|-------------| | Employee expenses | $ 770 | $ 315 | | Rebates | 4,226 | 3,042 | | Advertising | 3,830 | 4,508 | | Capital expenditures | 20 | 715 | | Other | 4,035 | 967 | | Total accrued and other liabilities | $ 12,881 | $ 9,547 |
10. Other Long-Term Liabilities
Other long-term liabilities consisted of the following as of December 31, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Deferred revenue | $ 29,976 | $ 27,640 |
| Other | 376 | 364 |
| Total other long-term liabilities | $ 30,352 | $ 28,004 |
11. Stock-Based Compensation
Class B Profit Interest Units
2018 Equity Plan
In connection with the HELOC Transaction, all of the Class B awards issued under the 2018 Plan vested and were settled pursuant to the change in control provisions provided for in the award agreement. The Company recognized $1,149 and $4,030 in stock-based compensation expense for the settlement of the time vesting and performance vesting awards, respectively, of which $3,244 was allocated by specific allocation (unit holder) and $1,935 was allocated based on revenue for the year ended December 31, 2022.
Prior to closing of the HELOC Transaction, the Parent modified the terms of the Class B Profit Interests previously granted to five management team members to allow for continued vesting post-separation. As a result of these modifications, the Company recognized stock-based compensation expense of approximately $1,215 for the year ended December 31, 2022 based on the modification date fair value which is reflected in amounts disclosed above.
2022 Equity Plan
In November of 2022, in connection with the HELOC Transaction, the Parent entered into the Binford Aggregator LP Executive Equity Incentive Plan (the "2022 Plan").
The awards issued under the 2022 Plan are also referred to as Class B Profit Interest Units. For the 2022 Plan, 26.67% of Class B Profit Interest Units vest over time and are conditioned upon the participant's continued employment and the achievement of a set return on invested capital.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the company recognized several instances of stock-based compensation expenses in 2022. For the settlement of time-vesting awards under the 2018 Equity Plan, the company recognized $1,416. Additionally, $5,450 was recognized for performance-vesting awards under the same plan. Prior to the HELOC transaction closing, modifications to Class B Profit Interests resulted in a stock-based compensation expense of $18,004. Finally, the settlement of Class A-2 units resulted in a gain of $3,585.
In another section of the FDD, under the 2018 Equity Plan, the company recognized $1,149 in stock-based compensation expense for the settlement of time vesting awards and $4,030 for performance vesting awards. Of these amounts, $3,244 was allocated by specific allocation and $1,935 was allocated based on revenue for the year ended December 31, 2022. Additionally, modifications to Class B Profit Interests resulted in stock-based compensation expense of approximately $1,215 for the year ended December 31, 2022.
Finally, the table provided in the FDD shows stock-based compensation of $4,409 for the period ending December 31, 2022. These figures reflect the various equity plans and transactions affecting Benjamin Franklin Plumbing's stock-based compensation for that year. A prospective franchisee should carefully review these figures and seek clarification from Benjamin Franklin Plumbing regarding the specific details of these compensation plans and their potential impact on the company's financial performance.