What was the weighted-average exercise price for SARs exercised in 2024 for The Standardx?
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 SARs (Stock Appreciation Rights) exercised during the year ended December 31, 2024, was $55.19. This means that, on average, when SARs were exercised in 2024, the price paid was approximately $55.19 per share. SARs give the holder the right to the appreciation in the value of a specified number of shares of stock.
For a prospective franchisee, understanding the exercise price of SARs can provide insight into the company's compensation structure and how it incentivizes its employees and executives. It's important to note that the exercise price is just one component of the overall value and impact of SARs. The grant date fair value, the vesting schedule, and the potential for future stock appreciation all play a role in the attractiveness of these rights.
The FDD also provides additional context regarding SARs, including the number of SARs outstanding at different dates, the weighted-average remaining contractual term, and the weighted-average grant date fair value for awards granted in different years. This information can help potential investors assess the potential dilution effect of SARs and the overall cost of stock-based compensation.
It is important to consider that the value and impact of SARs can change over time due to market conditions, company performance, and other factors. Prospective franchisees should consult with a financial advisor to fully understand the implications of SARs and other stock-based compensation plans.