Jeremy Hamblin: Another question here, just in terms of the sale of the color that you provided in the queue here on the sale of the Ohio locations, $3,300,000, substantially higher, I think that’s what, $825,000 a unit, substantially higher than what you realized on your first two deal this year? Wanted to understand first, what should we be expecting as you look to refranchise approximately 100 locations over the next few years? And then what was driving specific to these deals? Why the Ohio locations were so much more highly valued than the other locations? I know that New York City locations were not super profitable. And that’s probably part of the answer, but wanted just a little more color there.
Steve Cirulis: Yes. Look, that’s the primary element that goes into valuation of a franchised restaurant concept and its trading. And the other thing that I think affects that is the timing. If you look at this business continues to get stronger and stronger. And so our willingness to sell franchise or company units into the franchise system is really driven by our desire to continue to develop to spur that development. In terms of the value difference, each deal is going to be different, each deal has to be rooted in the economics, so, that particular portfolio, and the history of that particular portfolio. So, that really is the difference between those. But I can tell you that we’re excited about each one. We would only do one if we’re accretive to the business.
Overall, especially with the growth that comes with them. But, yes, you spotted it in the queue that most recent deal with Royal Restaurant Group, we’re very pleased with. To sell 4 units, it’s 17 additional units in Central Ohio to be developed there. And then of course the remainder of the other 19 down in Florida in a group that the CEO, the CFO and COO, all work together in one of QSR’s largest franchise groups in a multi state environment done development before. And we’re just incredibly excited to see this quality of franchisees coming to the brand.
Jeremy Hamblin: Yes, it sounds tremendous. And if you can add color there on just the franchisee pipeline, are you seeing a different type of franchisee that’s interested in the business now as opposed to six or nine months. Are you anticipating or looking for slightly larger partners like RRG, or are you still looking to fill kind of more mid tier, mid scale franchisees?
Steve Cirulis: Yes. I think there’s kind of two parts to the answer to your question. First one is just in the quality of franchise candidates that we’re saying we are very excited to see the quality of our franchise candidates just continue to improve. And I mean that with all the same excitement we’ve stated about all the previous ones that have joined the system. The brand is getting stronger, performance is getting stronger and candidly franchisees follow the lead of other franchisees that they respect. And so, as you strengthen the system, you tend to strengthen the candidate pool. And I’m glad we’re enjoying that natural trend and we’re taking advantage of it. We’ve also invested heavily in our development team to be able to recruit the best.
So that’s very exciting for us. 40 units is a big deal. In fact you probably could find me saying in the past that we wouldn’t do very many of those, because there aren’t that many groups that can fulfill that much development in that shorter period of time. As a reminder, we’ve always said that our development deals, we’d like them to be about one a unit a year unless you have more than eight units and then it’s an eight year limit to finish developing that out. And by and large, we’ve stayed really true to that development pipeline and pace. Well, there aren’t many groups that can develop that many units that quickly. This group can, we believe that 100% so today. And so I think over time you’re still going to see a blend. We’ll see some in the mid to high-single-digit number of units deals.
