What was the stock-based compensation expense for Hawthorn Suites By Wyndham in 2022?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
---|---|---|---|---|---|---| | I-75 & EAST MAIN STREET | CARTERSVILLE | GA | 30121 | (706) 506-2109 | BILLAL JAVAID & KHALID JAVAID | | | 146 OLD ALLATOONA RD SE | EMERSON | GA | 30121 | (714) 855-8104 | KA PHX THOMAS, LLC | | | 0 COURTNEY DRIVE | FOREST PARK | GA | 30297 | SBERNARD@TPIGROUPGA.COM | JASBER HOSPITALITY GROUP, LLC | | | I-85 AND | S
Source: Item 23 — RECEIPTS (FDD pages 92–402)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the company spin-off from its former parent included separation-related costs. In 2022, Hawthorn Suites By Wyndham recognized separation-related expenses of $1 million. These costs primarily consisted of legal and tax-related expenses associated with the separation.
Stock-based compensation is a method of paying employees using company stock. This can include stock options, restricted stock units (RSUs), or other equity-based awards. These awards are typically subject to a vesting schedule, meaning the employee must remain with the company for a certain period of time before they fully own the shares. Stock-based compensation is a non-cash expense for the company, as it does not involve an immediate outlay of cash. However, it does dilute the ownership of existing shareholders.
For a prospective Hawthorn Suites By Wyndham franchisee, understanding the financial transactions between the franchisor and its former parent company can provide insights into the stability and financial health of the franchise system. While the $1 million in separation-related expenses in 2022 may not directly impact franchisees, it reflects the costs associated with establishing Hawthorn Suites By Wyndham as an independent entity. Franchisees should consider these types of expenses, along with other financial metrics, when evaluating the overall financial performance of the franchisor.
It is important to note that while the FDD mentions stock-based compensation plans, it does not explicitly state the stock-based compensation expense for Hawthorn Suites By Wyndham in 2022. The FDD discusses incentive equity awards granted by the company, but it does not break down the specific expenses related to these awards for each year. A prospective franchisee should request further clarification from the franchisor regarding the stock-based compensation expenses and how they are accounted for in the company's financial statements.