Jake Singleton: No, I think we have signalled that we’re moderating the pace of greenfield development. So, if you do some simple math, $300,000-ish cash flow to, to build a greenfield unit we’re going to do between eight and 12. You can kind of get a sense for the planned CapEx as it relates to green fields. Again, we generated over $11 million in cash flow from operations, with continued expansion, you would, you would assume that that number is hopefully going to trend in the right direction, meaning we have more resources to deploy on top of the 10 million that we have remaining on the balance sheet as well as the $18 million remaining on the line. So as I think about the cash that we generate which this is a cash generative business plus the liquidity we have either with cash on hand or through the revolver I don’t see us having, I don’t see us those levels impacting our decision making at all.
Operator: Next question will be from Linda Bolton Weiser, DA Davidson. Please go ahead.
Linda Bolton Weiser: So I just wanted to explore a little bit the trend here of franchise licenses sold. So 75 in 2022, I think that’s below the pre-pandemic levels. It was like 99 in 2018 and 126 in 2019. So I’m just trying to understand, is it that your model is maturing and you’ve penetrated your markets adequately or I’m just trying to understand, why the pace of franchise licenses sold would not be continuing to be pretty high.
Peter Holt: Hey, Linda, that’s a great question and there’s a number of factors there and certainly there is the headwinds we’ve been talking about in 2022, particularly uncertainty in the market, consumer confidence, interest rates increasing. What’s interesting to me, when you look at those 75, 60% of them were existing franchisees who know the business, understand how to operate it and still believe that it’s a good time to invest. And I think that those franchisees, the potential franchisees new to The Joint it’s with all this uncertainty out there, it does give them a pause in terms of, okay, this is the right time to invest in a franchise, whether it’s us or anybody else? And so I think if you look across the industry, there’s been a softness in franchise sales across 2022 and we’ll be interesting to see where that goes in 2023.
So, there is that factor you mentioned that is it slowing down because you’re just getting more mature and I would say, I don’t want to make it too much of a factor, but that is correct, is that we’ve got a lot of major markets where we’ve sold a lot of clinics and are continuing to open them that are full. Now that doesn’t mean we still don’t have a lot of wide space out there. So we know that we have huge opportunities in the northeast and in the Midwest, but in some of our more mature markets in the southeast and in the southwest there is when we’re putting new clinics in the Scottsdale Arizona market, you’re tucking them in here and there because of a major market absolutely are already developed. So there is a, an element to that, but I think overall it’s really that consumer sentiment that that does have such an influence on sentiment that that does have such an influence on what’s going to happen with franchise sales.
The other factor that hugely are tied to that consumer sentiment is unemployment rates, is that there’s no question when you see, typically in a recession, we see franchise sales increase people being laid off, they need to do something. And that while we continue to be experiencing these record high or record low unemployment rate rates I think that is another factor that influences, you’re sitting there at a job, okay, maybe you don’t like it that much, but you are not feeling like, oh my gosh, I’ve got to go do something different. Or if I do something different, it’s a lot safer to go to another job as opposed to take my life savings and buy a franchise. So I think those are elements that are influencing the number of franchise sales that we are experiencing.
