What was the value of outstanding items for Precision Door Service as of December 31, 2021?

According to Precision Door Service's 2025 Franchise Disclosure Document, the value of outstanding items as of December 31, 2021, was $122,030,131. This figure reflects the total value of outstanding profits interest units under the equity-based compensation plan. These units were approved to be granted under the plan created in September 2021 by Nest Management LP, a co-investor with KKR.

These profits interests were granted on October 27, 2021, and subsequent dates. They are exercisable only to the extent they are vested and do not expire. Vesting occurs over time (50%) and based on achieving defined financial criteria upon a liquidity event of Precision Door Service (50%). Time-based profits interest units vest at a rate of 20% annually over five years, contingent upon continuous employment.

For a prospective franchisee, understanding the equity-based compensation structure of Precision Door Service is crucial. While franchisees themselves may not directly participate in this plan, it provides insight into how the company incentivizes its management and employees. The vesting schedule and performance-based criteria suggest a long-term focus and alignment of interests between the management and the overall success of the company. This can be a positive indicator of the stability and growth potential of the franchise system.