I mean, we are a people focused business. Right. So I still, I feel like the transaction is about the agent and they can provide more success. Consumers want that. And so that doesn’t mean we ignore technology, but we enable effectiveness and customer experience with technology. So people focus, technology enabled, definitely. There’s no doubt here there’s a curiosity, especially in the channel and with our network and our agents or brokers and folks here. So we will, explore a growth mindset. And that’s about curiosity. That’s about innovation. That’s about leaning in right to the model and, discovering new things where we can help. And we will be laser focused on improving the customer experience and being the absolute best there. I’m very passionate about that, but at the same time, it is a clean sheet of paper.
I’m coming in brand new. I’m here just over three months. So, I like to wake up every day and think about, whether it’s the example of day zero or day one, you can think a clean sheet or, a blank whiteboard and so we will be, open-minded. We’ll also be opportunistic. I know you’d love to hear exactly what our strategy is going to be. We’re not going to lay that out quite yet, but, we are working on it. And so more to come there. But there’s nothing really closed off, I guess, I’d say, John. And so, if it’s a different way to think about helping brokers and owners be successful in the market or helping agents, that could be fields – fees, that could be tools, that could be programs like teams. All those things are on the table. So a long answer with no answer for you.
John Campbell: No, that’s helpful. That’s helpful. I think you said enough there. Karri, I was a little surprised to hear about the model impairment charge. It seems like you guys have obviously performed well there. I mean, obviously the mortgage market is very difficult. Housing is difficult, but then you’ve got the refi impact on mortgage that has added another layer of complexity. But I’m curious if that impairment, if that’s more of a markdown from a, maybe like an ultra-bullish outlook and just kind of taking that down a bit, or is there something structural where the, maybe the current best basis at risk? I know you guys mentioned the word churn, which you haven’t really mentioned much about model in the past. And I’m curious about whether that’s, again, taking that down from a very bullish long-term forecast versus something systemic.
Karri Callahan: Yeah. Hey, it’s a great, and it’s a valid question, John. I think, as I said in the scripted remarks, we continue to be very, very bullish on the opportunity for the mortgage segment. Both the, the Motto business from a franchise sales perspective, obviously sales are down, but we’re still selling franchises in the mortgage space in a, historically difficult mortgage environment. And then on the welmo side, continue to see strong growth there. And given how the service there is included and mandated in the franchise agreement, still continue to be very bullish on the opportunity there, you know, unfortunately really tied up kind of in the accounting rules. We really had to just really put our best foot forward in terms of what the projected near-term cash flows were related to that business.
And it’s really because of the macro environment and that reduction in near-term cash flows that caused the impairment, but nothing structural or how we see the long-term opportunity associated with that business.
Erik Carlson: And John, maybe Ward can comment on a churn. That also might be a legacy term that I’ve used from my old pay TV days. So, but I’ll let Ward comment on that.
Ward Morrison: Yeah. I mean, obviously ’23 was a tough year in the mortgage industry. So we did have some terminations that stepped up a little bit, but we feel like with any kind of change in interest rates, we can improve that. Additionally, we started to really focus on recruiting LOs to try and benefit our owners, get them more LOs into the office or loan originators so that they can do more business and make sure that they can weather the storm because all that matters in mortgage is volume. And so really just trying to drive that volume in those locations so that those offices remain strong and sound in the near future.
John Campbell: Okay. That’s helpful. And then maybe I could squeeze in one more here and it’s related to the Motto, but I mean, it’s, it’s clear to see the decline and the franchise, the sign franchises over the last couple of years, I think you’re doing maybe a little bit less than half of what you did probably two or three years ago. As you took this impairment charge, you’re, you’re having to forecast out what you’re assuming for franchise sales here. I don’t know if you can try a little bit of color there, any kind of indication of what that might look like this year? Do you expect that to, bounce back as overall mortgage market bounces back, just kind of any kind of direction on that?
Karri Callahan: Sure. So, I think as we look at, that forecast that’s embedded kind of in that cash flow analysis, we’re kind of ramping from tens of sales up to hundreds in the outer years, near term, as we look at 2024, looking to have some growth last year, we did 27 kind of looking, maybe in that 40 to 50-ish range this year, that’s obviously dependent on what happens from a, from a macro perspective and what happens with, with rates. But as I said, Ward and the team have really done a great job still even, selling a mortgage product in a really difficult to end market.
