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Franchise Group, Inc.

franchisegrp.com

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2023 10-Q, filed Aug 8, 2023. Its latest SEC filing is a 15-12G from Aug 31, 2023.

The sections below describe the company as of the FY2022 annual report.

How Did They Make Money?

Merchandise buyers pay at checkout or when online orders are delivered. Franchisees pay opening fees and royalties as stores make sales; Buddy’s also earns rental revenue through rent-to-own agreements.

FY2022 revenue by product or service revenue
SegmentShareRevenue
Product
Sold outright

87%
Service
12%
Rental
Recurring
0.7%

Who Were Their Customers?

Consumers shop in stores and online; Pet Supplies Plus also wholesales products to franchisees. Franchisees operate branded locations, while Badcock dealers sell consigned merchandise.

Did Revenues Turn Into Profits?

No. It lost $68.6M in FY2022.

Operating income, FY2022
5% of revenue
▼ −2% vs FY2021 ($226.4M, 7%)
Net income, FY2022
−2% of revenue
▼ Now a loss vs FY2021 ($363.8M, 11%)
Free cash flow, FY2022
−2% of revenue
▼ Now a loss vs FY2021 ($57.9M, 2%)

How Were They Changing?

Since the FY2022 annual report
Latest quarter: Q2 FY2023, the three months to Jul 1, 2023
Revenue
▼ −5%
vs $1.1B in Q2 FY2022
Product share of revenue vs 86.9% in Q2 FY2022
  • Aug 21, 2023 Buyer group completed acquisition; shares were delisted Franchise Group became a subsidiary of the buyer group, and its common and preferred stock was delisted.
  • May 11, 2023 Signed merger agreement with management-led buyer group The buyer group included company management led by Brian Kahn, B. Riley Financial, Inc., and Irradiant Partners.
  • May 10, 2023 Withdrew its financial outlook The company withdrew its previous financial outlook following its first-quarter announcement.

From tax services to retail portfolio The older report centers on tax preparation through franchise offices and online programs. The latest describes a portfolio of retail, pet-supply, furniture, rent-to-own, and tutoring brands operated through company-run, franchised, and dealer locations.

Revenue over time
Product Service Rental
$5B$2.5B$0

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