So it was easy access for us to get the cash. What we ideally would have loved to just done all the repurchase of shares on the preferred under a securitized model, yes, that makes it easier, but given the timing and the share price, we’ll go ahead and take the debt in the short-term. We were going to refinance that out anyway. So to me, it’s just a timing issue of being able to do it now at a lower price and taking advantage of that. Yes. And not to mention our leverage is pretty low. We’re just over 2x. So even borrowing the $50 million, we’re still at roughly just under 3x levered. So it makes it easy for us to do it.
Jonathan Komp: Got it, I appreciate the color. Thanks again.
Operator: Thank you. The next question is from Ryan Meyers of Lake Street Capital. Please go ahead.
Ryan Meyers: Hey guys. Thanks for taking my questions. First one for me. Just wondering if you can comment on if you’ve seen any changes in the willingness of potential franchisees to open up more studios?
Anthony Geisler: Yes. So I have some data on that related to the number of licenses we sold. I mean the licenses we sold in Q2, about a third of them came from existing franchisees. When you look at the number of studios that opened in Q2, 50% of them came from existing franchisees. So you’re continuing to see new franchisees opening studios and buying licenses. But the existing franchisee and installed base we have, they — most of them buy around three licenses. They’re continuing to open those license. And again, like I said, half of them that opened in the quarter were existing franchisees and a third of the license sales that we sold this quarter came from existing franchisees. So they’re continuing to come back to buy more.
Ryan Meyers: Got it. That’s helpful color. And then can you maybe talk about how multiunit franchisees perform relative to single franchisees? Is there any differences there? Just kind of as a follow-up to my last question.
Anthony Geisler: Yes. Typically, what you see is franchisees that own multiple locations that benefit to them as they get to — they get the economies of scale, right? So there’s the ability from like a marketing perspective to market across all three of those versus just one specifically. So there’s actually benefits to the franchisee operating more even from a General Manager perspective, you could manage that across three. So you get the benefit of sharing labor resources, coverage in case of an instructor called out. So there’s actually a lot of benefits for our operating multiple. Not to mention if you open one, you typically will open the second one better and the third one better than that because you get the benefit of kind of experience and learnings from the first one to the second one to the third one.
So you typically see franchisees open their second one, they actually performed better out of the gate because they have all these lessons that they’ve learned and actually opening the first one.
Ryan Meyers: Got it, that makes sense. Thanks for taking my questions.
Operator: Thank you very much. The next question is from John Heinbockel of Guggenheim. Please go ahead.
Julio Marquez: Hey guys, this is Julio Marquez on for John Heinbockel. If you guys could touch on — you mentioned the improved costs in product and franchise revenue. But if you think about profitability of product equipment, how could that improve at scale? Any levers that we can pull there? And then to follow-up, any thoughts on the weekly KPIs? Any signs of changing member behavior would be great. Thank you.
