We’re also really looking more at a focus in a way we hadn’t done before, not just simply at new patients, but focusing on making sure that we keep those patients with us for a longer period. Right now, the average patient that stays as a member, a little over six months. And so Lori is putting in new programs that will help extend that period. And the final part of that is we’re also really focused on our lapsed patients because what we know is when those patients come, they stay with us roughly with that six months, very often, their pain [ph] goes away, so they – and their membership, but we can see about 25% of them will come back in the next six months. And so we’ve got programs that are being designed to really focus on that lapsed to patient to make sure that we’re bringing them in sooner than they otherwise would.
So I think we have some real opportunities there to develop in 2024.
Ryan Meyers: Got it. That’s helpful. Thank you for taking my questions.
Operator: Our next question comes from Jeff Van Sinderen from B. Riley. Please go ahead with your question.
Jeff Van Sinderen: Hi everyone. I realize some of these questions may be a little tough due to the refranchising efforts, but all things considered, how many new licenses do you think you would sell or expect to sell this year? Maybe a targeted range there would be helpful.
Peter Holt: Hey Jeff, thanks for the question, and that we do not guide on franchise sales, as you know. And we talked about – let’s say, we had 55 sales for the full year 2023. We know that some of the things that impacted those new sales is the economic environment, the higher interest rates, just the high employment, because there’s always been kind of a relationship between unemployment and growth in franchise sales. And so there’s a lot of factors there that had impacted where we were in 2023 compared to 2022. 2022, we’ve sold 75 licenses. And so when we say that we’re expecting there to be an impact on new license sales in 2024, and we had 55 in 2023, you kind of triangulate kind of where we expect that to be. And so that’s kind of the way I would look at it.
Jeff Van Sinderen: Okay. That’s helpful. And then sort of along the same lines of guidance. And again, I realize this is a little bit of a moving target, but based on the refranchised cadence or work that you’re doing there so far at the interest levels, and I know you said it will continue into 2025, but is there a way you can help us understand? I mean, I know you gave the system-wide sales, but just – I guess, maybe try to get to a reported sales line decline rate for FY 2024, just maybe order of magnitude there. Any help you can give us there?
Jake Singleton: Yes. I mean, that’s the tough part, Jeff. The GAAP revenues are going to move from being 100% recognized for a corporate location to a royalty stream as we execute the transactions. And so the depth and the breadth of that GAAP revenue decline will really be predicated on the pace and the size of some of these early transactions, which made it a really hard thing to determine from a guidance perspective for 2024. And so that’s why you saw us change the guidance metrics to overall sales figures, because that’s where we have the predictability now. So we’re not going to put out a target from a GAAP revenue basis because it’s really so predicated on the timing of those transactions.
Jeff Van Sinderen: Okay. Fair enough. Go ahead, sorry.
Peter Holt: Once we finish this, I think we can get back to, at least for us, the traditional metrics that we guide on. But there’s just too much uncertainty in terms of how this unfolds to be able to give you relevant guidance right now on EBITDA and revenue.
Jeff Van Sinderen: Understood. And then if we could shift the marketing for a minute, and I know you spoke to that, but I’m just wondering, is there any other color you can give us in terms of, to the degree that you want to, how you’re shifting the marketing? I know you mentioned maybe new channels and just any other color you can give us there?
Jake Singleton: Sure. And I think it’s really exciting to just see, of course, we have a strong CMO that’s come into play. She was the CMO over at SONIC, so she brings fresh eyes, she brings fresh programs and quite frankly, different disciplines. So one of the first things she’s done is to go in and do an audit of all of our media buys to make sure that we’re getting them the full power of them. We’ll be doing some RFPs on just some of those key vendors in marketing to make sure that we’re working with a partner that can most effectively support our business, that she’s designed some new programs that she’s putting out there where we are going to be working more with influencers. I think she’s really focused on the power of our co-ops.
