As of January 31, 2024, what was the total number of unvested units outstanding for Carls?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Time Vesting Units | Performance Vesting Units | Total Units | Weighted Average Grant Date Fair Value | ||
|---|---|---|---|---|---|
| Unvested Units outstanding as of January 31, 2023 | 525,417 | 598,383 | 1,123,800 | $ 5.25 | |
| Granted Units | 502,100 | 502,100 | 1,004,200 | 5.79 | |
| Forfeited Units | (162,500) | (176,750) | (339,250) | 5.79 | |
| Vested Units | (133,735) | (180,000) | (313,735) | 5.79 | |
| Unvested Units outstanding as of January 31, 2024 | 731,282 | 743,733 | 1,475,015 | 5.79 | |
| Vested Units outstanding as of January 31, 2024 | 4,856,429 | ||||
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, as of January 31, 2024, the total number of unvested units outstanding was 1,475,015. This figure is comprised of 731,282 time vesting units and 743,733 performance vesting units. The weighted average grant date fair value for these unvested units is $5.79.
For a prospective franchisee, understanding the vesting schedule and conditions attached to these units is crucial. Vesting schedules determine when the franchisee gains full ownership of these units, and performance metrics dictate whether the units will vest at all. The fair value of $5.79 provides a benchmark for the potential worth of each unit upon vesting, though the actual value may fluctuate.
It's also worth noting the changes from the previous year. As of January 31, 2023, the total unvested units outstanding were 1,123,800, with a weighted average grant date fair value of $5.25. This indicates an increase in unvested units year over year. Additionally, during the period, Carls granted 1,004,200 units, forfeited 339,250 units, and vested 313,735 units.
Understanding these figures helps potential franchisees gauge the overall financial health and equity structure of Carls. Reviewing these numbers in comparison to previous years can reveal trends in equity distribution and potential value for stakeholders.