What was the weighted-average exercise price for outstanding SARs at The Standardx as of December 31, 2023?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | Total | $ | 9 | $ | 8 | $ | 6 | | |
SARs—A summary of SAR activity is presented below:
| SARs | Weighted-average exercise price | Weighted-average remaining contractual term | |
|---|---|---|---|
| Outstanding at December 31, 2023 | 3,883,347 | $ 67.20 | 5.68 |
| Granted | 223,410 | 156.97 | |
| Exercised | (864,715) | 55.19 | |
| Forfeited or expired | — | — | |
| Outstanding at December 31, 2024 |
Source: Item 10 — OTHER ASSETS (FDD pages 132–156)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the weighted-average exercise price for outstanding Stock Appreciation Rights (SARs) as of December 31, 2023, was $67.20. The total number of outstanding SARs at that time was 3,883,347. The weighted-average remaining contractual term for these SARs was 5.68 years.
In 2024, The Standardx granted an additional 223,410 SARs with a weighted-average exercise price of $156.97. During that same year, 864,715 SARs were exercised at a weighted-average price of $55.19. By December 31, 2024, the number of outstanding SARs was 3,242,042, with a weighted-average exercise price of $76.59 and a remaining contractual term of 5.68 years. The number of SARs exercisable at that date was 2,541,081, with a weighted-average exercise price of $65.23 and a remaining term of 5.03 years.
Stock Appreciation Rights (SARs) are a form of equity compensation that gives the holder the right to the appreciation in the value of a specified number of shares of company stock over a specified period. The exercise price is the price at which the holder can purchase the underlying stock. The weighted-average exercise price provides an overview of the average cost to exercise all outstanding SARs. For a prospective franchisee, understanding the terms and conditions of SARs can provide insight into the potential future equity dilution and the overall financial health and compensation structure of The Standardx.