Anthony Geisler: Yes. In percentage, we’re all going to see the same kind of thing. But in real dollars for us, it’s not massive. And the reason is, is when you think of our box, it’s 1,500 square feet, not 15,000 or 25,000 or 50,000 or if it’s a lifetime, it can be bigger than that. And so they build a lot of — there’s a lot of showers and bathrooms and things like that. So it’s a much bigger box. So there’s a lot more walls, there’s a lot more electricity, here’s a lot more plumbing, which means a lot more engineering and planning and all that stuff. And so it’s — the percentages will be the same, but the build-outs are really cheap, just given the size and the scale that they are. If you think even the most complex builds, you really have two walls or three walls, you’re really building a box inside a box.
So in some cases, you’re building a wall just straight across the back or you’re building a wall that comes out of the middle and goes to the left. And so there’s just — there’s not a lot of walls, a lot of dry walls. There’s something like a StretchLab, Club Pilates, Pure Barre, YogaSix. There’s not a lot of electric work that has to get done in the StretchLab, for instance, which is a lot of our openings this year. The only thing that really plugs in is the front computer. And then our little maps program is on an iPad that stands there. But those are only kind of the two pieces of electric. So not a lot of electric wiring, you have a single bathroom or a men’s and women’s bathroom depending on the size of the box. So not a lot of work to do, so it has less dollar impact.
Warren Cheng: That makes sense, thanks Anthony. My follow-up question was just on Randy’s question earlier on the higher visitation. How are members, these new members finding your studios? You’ve developed a lot of new sources of generation recently. I’m just curious if there’s sort of ones that are most fruitful for driving visitation, driving the numbers?
Sarah Luna: Yes, great question. We’re leveraging all of our B2B partners, of course, constantly improving SEO and digital marketing efforts, but really looking at the overall blended CAC and making sure that we’ve got grassroots initiatives that are coupled with digital marketing initiatives that are coupled with our B2B partnerships. So all of that is now starting to really tick and push leads into the studios. Of course, our XPASS and XPLUS also are net new leads bringing into that as well and then recycling those leads through those channels to kind of bring them back to life so that they’re excited to come back into our studios again.
Warren Cheng: Thank you. Good luck.
Operator: Thank you. The next question is from Jeff Van Sinderen of B. Riley Securities. Please go ahead.
Jeff Van Sinderen: Hi, everyone. Just to clarify regarding the company-owned studio count decline from Q1 to Q2. All of those studios were sold, correct?
Anthony Geisler: It was flat from Q1 to Q2, roughly around 85 studios we had in — at the end of Q1 and the same amount in Q2. The studios that we talked to in the earnings release earlier was the ones that we’ve already sold. So we’ve already — about half of those have already been sold off to a new operator. So we’re on the way of already kind of executing on that strategy to unload and refranchise the studios that we have.
John Meloun: But to be more detailed, no they weren’t closed, they were sold to existing franchisees.
