How long do the options expire from the date of grant for Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The option vesting periods range from immediate vesting to a five-year vesting period, with accelerated vesting in the event of a change in control under certain circumstances, as defined in the Plans. In addition, certain options have vesting requirements based upon achieving certain operating results. The options expire 10 years from the date of grant or in the event of a change in control under certain circumstances, as defined in the Plans.
Source: Item 23 — Receipts (FDD pages 92–334)
What This Means (2025 FDD)
According to the 2025 FDD, options granted under the 2022 Stock Option Plan by Moe's Southwest Grill's parent company generally expire 10 years from the date they are granted. There is an exception, however, if there is a change in control, as defined in the plan, the expiration date may change.
These stock options are part of an equity incentive plan designed to attract, retain, and incentivize employees, directors, and consultants by increasing the value of the Parent's common stock. The Board of Directors determines the specifics of each option grant, including the amount, vesting schedule, and exercise price, within the limitations of the Plans.
For a prospective franchisee, this information is relevant in understanding the broader financial incentives and compensation structures within the Moe's Southwest Grill organization, although it does not directly impact the franchisee's operations or financial obligations. Franchisees may want to inquire about any potential opportunities to participate in similar incentive programs or how the performance of their franchise could indirectly influence the overall value of the company's stock.