Ann: FY23 Results Presentation, page-155

In a Tier 1 location, you would hope a corporate store would make make money. In many stores though, franchises survive on the "sweat equity", where the owner works insane hours to reduce the labour cost for a profit that is below the minimum wage. The corporate store must pay every dollar of that labour cost, sometimes the profit share is cheaper.

I do think it is a better model though if they can open a corporate store and invest the money and time to get that store operating well and bring the customers in, work out the product mix that sells the best etc.

Then sell to a franchisee and recycle that capital into a new location. I do think they should ensure that any buyer doesnt come in fully debt funded as often they buy with a massive mortgage against their home and they are under cashflow pressure from Day 1. I hope that their selection criteria for a franchisee is more extensive.