What was the amount of Share-based compensation for My Salon Suite in 2021?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2,569,087 | $ 17,655,295 |
|---|
Consolidated Statements of Changes in Member's Equity
| Common Shares | stock | Amount | Additional Paid-in Capital | Retained Earnings | Total | |
|---|---|---|---|---|---|---|
| Balance | 1,000 | $ | 1,000 | $ 326,062,998 | $ 39,734,388 | $ 365,798,386 |
| at | ||||||
| December | ||||||
| 31, | ||||||
| 2021 | ||||||
| Parent | - | - | (11,618,027) | - | (11,618,027) | |
| Company | ||||||
| advances | ||||||
| - | ||||||
| net | ||||||
| Share-based | - | - | 955,911 | - |
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the share-based compensation for the year 2021 was $955,911. This figure represents the cost recognized by My Salon Suite for compensating its employees with company shares or stock options. This compensation is part of the overall financial reporting and reflects the value of equity-based awards granted to employees.
Share-based compensation is a non-cash expense for My Salon Suite, meaning it doesn't involve an actual outflow of cash. Instead, it reflects the value of stock options or shares granted to employees as part of their compensation packages. The amount is determined using valuation models like the Black-Scholes option valuation model, which considers factors such as the option's expected life, volatility of similar entities, risk-free interest rate, and dividend yield.
For a prospective My Salon Suite franchisee, understanding share-based compensation is important for assessing the overall financial health and stability of the company. While it doesn't directly impact the franchisee's day-to-day operations, it provides insight into how My Salon Suite manages its employee compensation and incentives, which can indirectly affect the quality and motivation of the workforce supporting the franchise system.
It's also worth noting that the parent company originally allotted a total of 23,281 shares to be issued under the 2019 Stock Option Plan and increased the allotment by 2,741 shares in 2021. Option grants typically vest over 5 years with half based upon service and half based upon financial thresholds. 20% of the service-based options typically vest each year over a five-year period, and the financial performance-based options are subject to vesting upon a change of control.