As of January 31, 2024, what is the total number of unvested units outstanding for Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
lic offering, change in control or cumulative cash distributions, each as defined in the Limited Partnership Agreement, to result in the achievement of a specified return to the Partnership.
During fiscal 2024, the Partnership granted 502,100 time vesting and 502,100 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 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 performanc
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, as of January 31, 2024, the total number of unvested units outstanding is 1,475,015. This total is comprised of 731,282 time vesting units and 743,733 performance vesting units. These units have a weighted-average grant date fair value of $5.79.
For a prospective Hardees franchisee, understanding the vesting schedule and the value of these units is important. These unvested units represent a potential future obligation for Hardees, and changes in these numbers from year to year could reflect changes in employee compensation or company performance.
The FDD also provides information on the changes in unvested units from January 31, 2023, to January 31, 2024, including granted units, forfeited units, and vested units. Reviewing these changes can provide insights into Hardees's employee retention and compensation practices. The number of vested units outstanding as of January 31, 2024, is also listed as 4,856,429.