It largely reflects the overall Xpo average from that perspective. So it is just a difference in whether or not a franchisee is running their studio more as a personal business versus kind of something that generates a lot more sales than they run it to try and build, I would say, a mini enterprise of two to three units to generate more profits. So different benefit model, different strategy. Now the one thing that’s really interesting about our model and we proved this out during COVID is the model does have flexibility where if a franchisee does want to be more involved in the day-to-day operations and work within the studio, they have the ability to do that and lower their OpEx costs. But largely, we promote a semi-absentee kind of model from an operations perspective and encourage franchisees to operate more than just one studio.
George Kelly: Okay. Excellent. And then second question for you is on XPASS, I think that you said there’s been 60,000 cumulative bookings through XPass. So curious if I heard that right. And the part two is — what is your plan to accelerate that business? As you’re looking at 2024, beyond like are we getting to the point where you’ve seen enough where you feel comfortable maybe boosting marketing spending or something else behind it? And that’s all I had. Thank you.
Sarah Luna: You did hear that correctly. So we’ve had 60,000 bookings to date, and we’ll actually have more to talk about and dive into at the Analyst Day coming up in September. We’ve got some new initiatives there with XPASS.
George Kelly: Okay, understood. Thanks.
Operator: Thank you. Our next question is from Korinne Wolfmeyer of Piper Sandler. Please go ahead.
Korinne Wolfmeyer: Hey, good afternoon team. Thanks for taking the question. Congrats on the quarter. So just quickly, just one for me. I wanted to touch a little bit on the CAC, and maybe this is more of an Investor Day question as well. But can you just talk about like is there a way to quantify the level of kind of like that negative CAC you are getting from your B2B partnerships. Obviously, that other category has been growing nicely, and I see some of that is baked into that. And then as you think about the longer-term trajectory of these B2B partnerships and that negative CAC you’re generating, how are you thinking about the longer-term opportunity and how big that really can get over time? Thanks.
Sarah Luna: Yes, it’s really going to depend on each of the partnerships and the type of lead flow that they are bringing in. We’ve already got partnerships like ClassPass, which brings in lead flow and then some of our other B2Bs that will have new leads coming into the system are kicking off. To put it into perspective, we did see that year-over-year. There was a decline in CAC and CPL. So from an annual standpoint, we’re seeing things moving in the right direction, specifically given that our B2B partnership and our strategic business division really just launched about a year or so ago. So now those deals are done, they’re launching, and we’re starting to see the benefit of that across the system.
Korinne Wolfmeyer: Thank you.
Operator: Thank you very much. Ladies and gentlemen, we have reached the end of the question-and-answer session. And I would like to turn the floor back over to Anthony Geisler for closing comments.
Anthony Geisler: Thanks again for joining today’s earnings call and for your support. As we alluded to earlier, we’ll be hosting an Analyst and Investor Day on Wednesday, September 6 at the New York Stock Exchange. At the event, we plan to give the investment community an in-depth look at our business and drill down further on the company’s long-term strategic initiatives and growth opportunities. We hope to see many of you there and for those unable to attend in person, a live video webcast will be available on our Investor Relations website. In closing, we remain very bullish on the direction of Xponential Fitness is heading and look forward to continuing to support our franchisees, partners and customers every step of the journey. Thank you.
Operator: Ladies and gentlemen, we have reached the end of this conference, and you may now disconnect your lines at this time. Thank you for your participation.
