What is the contractual term length for stock options granted by Jack In The Box?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
Stock options — Option grants have contractual terms of seven years and employee options vest over a three-year period. Options may vest sooner upon retirement from the Company for employees meeting certain age and years of service thresholds. All option grants provide for an option exercise price equal to the closing market value of the common stock on the date of grant.
The following is a summary of stock option activity for fiscal 2024:
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, stock options have a contractual term of seven years. These options typically vest over a three-year period, meaning the employee can exercise their right to purchase the stock after this vesting period, assuming they meet the conditions.
However, the vesting period may be shorter for employees who retire from Jack In The Box and meet specific age and years of service thresholds. The exercise price for these options is set equal to the closing market value of the company's common stock on the grant date. This means the employee benefits if the stock price increases above that initial grant price during the option term.
It is important to note that no stock option awards were granted in fiscal years 2024, 2023, or 2022. As of September 29, 2024, there was no unrecognized compensation cost related to stock option grants. Prospective franchisees should be aware that stock options are not typically offered to franchisees, but rather to employees of the corporation. This information is primarily relevant to those considering employment with Jack In The Box corporate or its subsidiaries.