What was the weighted average grant date fair value for granted units for Carls?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
vesting Class C Units. The time vesting class C Units vest in either three or five equal annual installments from the dates of grant. the performance vesting Class C Units consists of either three or five equal tranches that vest upon achievement of certain annual financial targets for fiscal years 2024 through 2030 as set forth in the grant agreements.
During fiscal 2023, the Partnership granted 358,335 time vesting and 358,331 performance vesting Class C Units. The time vesting Class C Units vest in either three or five equal annual installments from the dates of grant. The performance vesting Class C Units consist of either three or five equal tranches that vest upon achievement of certain annual financial targets for fiscal years 2023 through 2027 as set fo
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the weighted average grant date fair value is detailed in the financial statements. For granted units, the fair value is broken down by time vesting units and performance vesting units.
Specifically, the weighted average grant date fair value for granted units was $5.79. This value applies to both time vesting units (502,100) and performance vesting units (502,100), which totaled 1,004,200 units.
This information is relevant to prospective franchisees as it provides insight into the valuation of equity-based compensation awarded to the executive management team, key employees, and directors. Understanding these values can help franchisees assess the financial health and compensation practices of Carls.