What is the maximum term for stock options at Better Homes And Gardens Real Estate?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
its at target, 0.4 million units were granted in February 2024 with a grant date fair value of $6.44, to align with the 2024 established free cash flow target. As of December 31, 2024, there were 2.6 million performance share units outstanding with a weighted average grant date fair value of $8.40.
Stock Options
Stock options have a maximum term of ten years and vest over four years, with 25% vesting on each anniversary of the grant date. The options have an exercise price equal to the closing sale price of the Company's common stock on the grant
date. The fair value of options is estimated on the grant date using the Black-Scholes option-pricing model. At December 31, 2024, there were 1.4 million options outst
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Better Homes And Gardens Real Estate's 2025 Franchise Disclosure Document, stock options have a maximum term of ten years. These options vest over a four-year period, with 25% vesting on each anniversary of the grant date. The exercise price for these options is equivalent to the closing sale price of the company's common stock on the date the option was granted.
As of December 31, 2024, there were 1.4 million options outstanding, featuring a weighted average exercise price of $21.97. All of these options were exercisable, with an intrinsic value of zero and a weighted average remaining contractual life of 3.3 years. It is important to note that Better Homes And Gardens Real Estate has not granted any options since 2019, and any forfeiture or exercise activity related to these options was immaterial for the year ending December 31, 2024.
For a prospective franchisee, understanding the terms and conditions of stock options is crucial, although it appears that new options are not currently being granted. The information provided gives insight into the historical stock option practices of the company. While this may not directly impact franchisees, it provides a view into the company's overall compensation and equity structure.