As of January 31, 2025, what was the total number of unvested units outstanding for Hardees?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
the Limited Partnership Agreement, to result in the achievement of a specified return to the Partnership.
During fiscal 2025, the Partnership granted 334,800 time vesting and 186,000 performance vesting Class C Units. The time vesting class C Units vest in either three, four or five equal annual installments from the dates of grant. The performance vesting Class C Units consists of either three, four or five equal tranches that vest upon achievement of certain annual financial targets for fiscal years 2025 through 2029 as set forth in the grant agreements.
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 eithe
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total number of unvested units outstanding as of January 31, 2025, was 844,258. This figure is comprised of 432,158 time vesting units and 412,100 performance vesting units. The weighted-average grant date fair value for these unvested units is $5.78.
These units represent a form of equity compensation or incentive that has been granted but not yet fully earned by the recipients. Vesting usually occurs over time (time vesting) or upon achieving specific performance targets (performance vesting). Until the units are vested, the recipient does not have full ownership or control over them.
The table also provides a comparison to previous years. As of January 31, 2024, the total unvested units outstanding were 1,475,015, which consisted of 731,282 time vesting units and 743,733 performance vesting units. This shows a decrease in the number of unvested units from 2024 to 2025. The vested units outstanding as of January 31, 2025 were 4,991,816.
For a prospective franchisee, understanding these figures may not directly impact their day-to-day operations. However, it provides insight into the financial structure and compensation strategies within the Hardees organization. It is important to note that these units are not directly related to the franchise operations but rather to the overall financial health and management of the Hardees brand.