We’ll see some in the double-digit deals and there may be one or two more of this scale depending on the candidate that comes in and their capabilities. It’s all about building that compounded growth that comes with the number of deals that we’re able to keep doing. So, generally speaking, kind of qualitatively, I’m very pleased with what we can see in the pipeline from this point forward, really pleased with the team and the work they’ve done so far.
Operator: The next question is from Mark Smith with Lake Street Capital. Please go ahead.
Mark Smith: Kind of a follow-up to that last question. Are there any characteristics of the restaurants that you’ve been selling or maybe the franchisees are more interested in? For instance, are we looking at lower volume or lower profitability in these restaurants that you’re selling or the franchisees like kind of cleaner ones, anything that you can call out there?
Steve Cirulis: Mark, great question. There is some difference and you kind of see that reflected in the asset purchase numbers that we’ve got in the queue. But it’s not necessarily driven by the franchisees desire for a particular type of restaurant. A lot of it is geography. Where are they? Where do they want to develop? Do they believe they understand the marketplace? In many cases, where do they have existing or previous businesses, because that’s their comfort level and that certainly has been the case with the refranchise deals that we’ve done so far. I’ll tell you, we have had an increasing amount of interest in just direct development. And for those that do contact us sometimes that are mostly focused on refranchising that those conversations don’t go very far.
There are a lot of QSR brands and other brands that are doing and have done refranchising where truly is kind of an EBITDA acquisition by the franchisee looking for growth, so that they can increase value and resell the business at some point in the future. And those just all tend to be very long conversations with us because we’re a growth brand. And you see that in this RRG deal, 36 new units after buying 4. They would tell you they just love the idea of having a base of operations even four units for them was exciting. They have managers to start with — they have places where they can train as they build all these new units. They’ve got a running start in a market that they really love in Central Ohio. So, they didn’t need a large acquisition, but they didn’t really appreciate the chance to have a small acquisition to build from.
Mark Smith: Perfect. And then next question, as we look at the marketing grants on contribution, do you now have that kind of where you want it or do you think there’s opportunities for it to creep higher? And then maybe discuss benefits that you as well as your franchises are seen from that?
Steve Cirulis: Yes. I think we like where we are today. We reserve the right both publicly and with our franchisees to continue to invest more. Our expectation is and David’s expectation leading marketing is that if we’re going to put a dollar into incremental brand fund investment that we’d like $3, $4, $5 back on the top line, that’s where we drive additional profitability. And in this world where we’ve got many digital opportunities to invest that amount of money, today it’s about 3%, that we have a chance to get the kind of returns that we’re really pleased with. There will be natural plateaus in the media or in the approach that you use or in the creative that you use and when you hit a plateau, then there’s another investment that can maybe get you to another level.
