11 March 2022

Franchise Brands PLC

("Franchise Brands", the "Group" or the "Company")

Grant of options and award of SARs

Franchise Brands (AIM: FRAN), a multi-brand international franchise business, announces that its Remuneration Committee yesterday approved the grant of options and award of share acquisition rights ("SARs") to employees and directors.

A total of 922,667 CSOP (Company Share Option Plan) options and 1,236,333 non-tax advantaged (non-approved) options, all with an exercise price of £1.50 per share (being the closing mid-market price of an ordinary share on 9 March 2022), have been granted. 

In addition, 1,177,000 SARs have been awarded to employees who are non-UK resident, with a grant price of £1.50 each. The SARs are conditional bonuses whose value will be calculated by reference to the amount by which the price of the Company's ordinary shares has risen above the grant price at the date of exercise, thus providing holders of SARs the same reward value as if the SARs were share options. The qualifying conditions and timing of vesting are identical to those within the share option schemes for UK employees.  All SARs are settled in cash when exercised. 

The CSOP options and non-approved options granted and the SARs awarded expire on 9 March 2032.

The CSOP options, non-approved options and SARs are all subject to satisfaction of the following performance conditions:

1)    as to 20 per cent. after reported fully diluted adjusted earnings per share ("EPS") achieves compound annual growth of 8 per cent. over each of the next three financial years;

2)    as to 100 per cent. after reported fully diluted adjusted EPS achieves compound annual growth of 15 per cent. over each of the next three financial years; and

3)    between 20 per cent. to 100 per cent. of their options on a sliding scale basis on EPS growth between the targets in 1) and 2) above.

Certain directors of the Company have been granted options or awarded SARs, details of which are set out below.

The notifications below, which have been made in accordance with the requirements of the UK Market Abuse Regulation, provides further detail.

Enquiries:

 Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.