How many units were granted under the 2022 plan for Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
change of control | | 0.34 | (5,034,244) | | | | Units outstanding as of November 30, 2022 | | - | - | N/A | | | Granted under 2022 Plan | | - | 17,539,639 | | | | Forfeitures | | - | - | | | | Vested | | - | - | | | | Units outstanding as of December 31, 2022 | | 0.30 | 17,539,639 | 4.92 years | | | Granted | | 0.31 | 4,019,918 | | | | Forfeitures | | 0.30 | (1,216,642) | | | | Vested | | - | - | | | | Units outstanding as of December 31, 2023 | | 0.30 | 20,342,915 | 4.01 years | | | Granted | | 0.29 | 3,865,437 | | | | Forfeitures | | 0.30 | (4,526,974) | | | | Vested | | - | - | | | | Units outstanding as of December 31, 2024 | $ | 0.30 | 19,681,378 | 3.22 years | |
| Performance-Vesting Units | |||||
|---|---|---|---|---|---|
| Weighted Average Fair Value | Class B Profit Interest Units | Weighted Average Remaining Contractual Term | |||
| Units outstanding as of December 31, 2021 | $ | 0.18 | 10,068,487 | 2.5 years | |
| Granted | - | - | |||
| Forfeitures | - | - | |||
| Vested due to cha |
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, 48,225,786 Class B Profit Interest Units were granted under the 2022 Plan. These units are a form of stock-based compensation. The weighted average fair value of these units at the time they were granted was $0.22.
The vesting of 26.67% of these units is contingent upon the participant's continued employment and the achievement of a set return on invested capital. The remaining awards vest as the company achieves multiples of the invested capital and are further conditioned upon a change in control or a qualified leverage recapitalization. As of December 31, 2024, and 2023, no units had vested under this plan.
For a prospective Benjamin Franklin Plumbing franchisee, this information is relevant because it provides insight into the company's compensation structure and how it incentivizes its employees and stakeholders. While franchisees themselves may not directly participate in this stock-based compensation plan, understanding the incentives of the management team can offer a glimpse into the company's overall strategic goals and priorities.