I think there’s still a lot of growth in this market, you see in our numbers that we see the potential for nearly 2000 units. And so I think as we continue to build out this market, as more and more people discover the EF efficacy of chiropractic all that does is make it easy, more able to dense pack our clinics in existing markets and open up new markets just because more and more people are finding chiropractic care to help alleviate their pain.
Linda Bolton Weiser: Okay. and then I guess I was also wondering too, we’ve seen with some other franchise models that some of the franchisees developed ahead of contracts requirements pre pandemic just because costs were low and the environment was good, and so they developed ahead of schedule and, and now there’s like that’s contributing to slowing of development. Are you seeing that too or, or not so much with, with your model?
Peter Holt: I’m not seeing so much of that with our model, but I think there is an element of, of impact there. That, and it, and, and it is, there’s no question. Let’s say that you’ve signed a multi-pack agreement, so you’re going to open up a number of units in a relatively short period of time and when you sign that agreement let’s say interest rates were half of what they are today. And so does that give that franchise process franchisee a little pause and kind of slow down or make sure that those other clinics are getting past their break even before I break down for that next clinic? I think there’s a little bit of that, but I would say overall, when I think of them with experience here at The Joint is what we have is really a remarkable rate of getting clinics open.
There’s a lot of franchise systems out there that end up selling a lot of units that ultimately don’t get open. And then I think we, if you look at us compared to other franchise systems, is that we have a very effective rate of getting clinics open over time.
Linda Bolton Weiser: Okay. And then just one final question. I think we were all a little surprised to hear from Planet Fitness that one of their largest franchisees has to kind of stop development because of their capital structure. Can you just remind us, I know you’re a whole lot different, but what are your biggest franchisees, like how many units do they have and do you require financial statements of your franchisees to be submitted to to, to the corporate office?
Peter Holt: Oh, absolutely. in terms of the process, in terms of the part, the part of the process of due diligence for an potential franchisee coming in is that one of the many factors they go through is they have to submit complete financials and proof that they have the resources to take on whatever the, the number of units that they’re considering. So that’s absolutely part of our due diligence. And yes, our contract requires our franchisees to submit their PNLs on an annual basis that like many franchisors, we probably need to be better at that, but obviously we did quite a number of them. And you’ll see that in our FDD when we’re putting in those full financials of our franchisees based on those submittals. And that’s an area that we’re continue going to focus on and make sure those franchisees are in fact getting those in on a timely basis.
And there’s some others other vendors that we’re going to work with that really makes it easier and easier for that franchisee to be able to do that because it’s a really powerful tool to understand clinic performance that when we talk about US versus Planet Fitness, there’s a huge difference in terms of just the makeup of our franchisees because as that their strategy for growth is very much tied to private equity. And that in our, our circumstances, while we have a little bit of interest in private equity, I think there’s one small private equity group that has been bought at one of our, I think 11 clinics or eight clinics that we don’t have that same level of private equity participating as a large holder clinics in this market. Now, if you look at that overall number of the, the, the 700-plus or 712 operating franchise units that we have, our largest single franchisee has a little, has around 60 units operate in five states.
