Risk Factors Update Summary
- Increased number of franchisees from 556 to 651 and studios from 1,954 to 2,055.
- Number of studios contractually obligated to be opened increased from 1,939 to 1,963.
- Average time to open a studio increased from 12 to 15 months.
- Total indebtedness increased from $137.3 million to $328.7 million.
- Operating losses incurred each year since 2017, with net losses of $51.4 million in 2021.
- Ownership of company-owned transition studios decreased from 55 to 22 in 2023.
- Goodwill impairments of $4.2 million related to Stride and Row House brands in 2023.
Full Text Changes in Most Recent 10-K
Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.
To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=1802156&owner=exclude
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