How many Class B Profit Interest Units were granted to Benjamin Franklin Plumbing in 2023?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
rmined that it is not probable that any of the change in control events will occur and, as such, compensation expense related to the portion of the awards conditioned upon occurrence of these events has not been recognized in the consolidated financial statements for the years ended December 31, 2024, 2023 and 2022.
The awards that have a time-vesting component are earned in equal tranches upon each of the anniversaries over the period of five years which was determined to be the requisite service period. These awards will not vest until the return on invested capital condition is met or upon occurrence of the change in control events even as the time-vesting condition is met. As of December 31, 2024 and 2023 no units were vested.
The table below summarizes transactions under the Company's stock-based compensation plans:
| Time-Vesting Units | |||||
|---|---|---|---|---|---|
| Weighted Average Fair Value | Class B Profit Interest Uni |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, 10,920,399 Class B Profit Interest Units were granted in 2023. These units are part of the company's stock-based compensation plan. The weighted average fair value of these units at the time they were granted was $0.31.
These units are subject to vesting, meaning they are earned over time. Some vest over time, contingent on continued employment and achieving a set return on invested capital. Other units vest when the company achieves certain financial milestones or experiences a change in control, such as a qualified leverage recapitalization.
As of December 31, 2023, none of the Class B Profit Interest Units had vested. This means that while the units were granted, the recipients had not yet fully earned the rights associated with them. The weighted average remaining contractual term for these units was 4.05 years, indicating the average time remaining until the units could potentially vest, assuming all conditions are met.