For Stretch Zone, what was the total unrecognized stock-based compensation as of December 31, 2024, related to service-based restricted stock units?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
and 2023
NOTE J - UNIT APPRECIATION RIGHTS LIABILITY AND LONG-TERM INCENTIVE PLAN (CONTINUED)
The fair value of the service based restricted stock units are measured on the date of grant and amortized over the vesting period. The vesting period is four years. As of December 31, 2024, the u
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, as of December 31, 2024, the total unrecognized stock-based compensation related to service-based restricted stock units was $773,000. This compensation is expected to be recognized over a period of 3.2 years.
This information is found within the notes to the financial statements, specifically Note J, which discusses unit appreciation rights liability and the long-term incentive plan. It's important to note that this figure represents the amount of compensation that has been granted but not yet expensed on the company's income statement. The expense will be recognized over the vesting period of the stock units, which in this case is 3.2 years.
For a prospective franchisee, this information may not directly impact their day-to-day operations. However, it provides insight into Stretch Zone's compensation structure and how they incentivize employees and other stakeholders. Understanding the company's financial obligations, including stock-based compensation, can help franchisees assess the overall financial health and stability of the franchisor.