What was the weighted-average grant date fair value for Hardees' granted units?
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 ve
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, the weighted-average grant date fair value for granted units is detailed in the financial statements. For the year ending January 31, 2024, the weighted-average grant date fair value was $5.79. In the subsequent year, ending January 31, 2025, the weighted-average grant date fair value for granted units was $5.77.
These values reflect the estimated fair value of equity-based awards, which Hardees issues to its executive management team, certain key employees, and directors under its equity-based compensation plans. The fair value is measured at the grant date and recognized as an expense over the requisite service period. The equity-based compensation structure includes both time vesting and performance vesting profit sharing interests.
For a prospective franchisee, this information is relevant as it provides insight into Hardees' financial practices and how it compensates its key personnel. While it doesn't directly impact the operations of a franchised restaurant, it offers a glimpse into the overall financial health and management strategies of the company. Understanding these aspects can help a franchisee make a more informed decision about investing in the Hardees franchise system.