What was the weighted-average grant date fair value for the time vesting units granted by 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 weighted-average grant date fair value for time vesting units was $5.77. This valuation is relevant to the Partnership's issuance of Class C Units, which are profit-sharing interests, to certain members of senior management and the Board of Directors. These units vest over time, typically in three, four, or five equal annual installments from the grant date.
The fair value represents an estimate of what these units are worth at the time they are granted. This information is part of the financial reporting related to share-based compensation arrangements within CKE Holdings LP, the sole stockholder of CKE. The document specifies that during fiscal year 2025, 334,800 time vesting Class C Units were granted.
For a prospective franchisee, this information provides insight into how Hardees incentivizes its leadership and management through equity-based compensation. While it doesn't directly impact the operations of a franchised restaurant, it offers a glimpse into the financial structure and management philosophy of the overall Hardees organization. Understanding these aspects can help a franchisee assess the stability and long-term vision of the company they are investing in.