Question-and-Answer Session
Operator
(Operator instructions) And your first question comes from the line of Kartik Mehta with FTN Equity Markets. Please proceed.
Kartik Mehta – FTN Equity Markets
Good afternoon.
Mike Yerington
(inaudible) correct.
Kartik Mehta – FTN Equity Markets
Hi, how are you?
Mike Yerington
Good.
Kartik Mehta – FTN Equity Markets
A big picture question to start off with, I guess as you look at next tax season and you want to grow your store base, with the couple of last – couple of tax seasons you’ve had it has been a little bit disappointing. What do you think the impact of that – is there going to be on getting new franchisees on board to sell locations, or do you think you have to now open more Company-owned stores?
Mike Yerington
You know, I think it’s a good question. With the Walmart announcement today, there are over 300 locations, which are available for sale to either new or existing franchisees. I think that there will be a lot of franchisees. It will be very excited about being able to get into that opportunity because those operations are, as you know, or may know, are available for the season only. And so the cost to rent that space for the season is good for them versus renting a store for the whole year. And I think that we are just now starting to see some effort on the sales side of the house that would give us some other stores besides Walmart. So, even though we have not focused on that this year, and with the addition of the Walmart distribution we probably won't spend a lot of time focusing except to get Walmart to get rolled out, I think that we’ll have a great footprint next year as we end the season.
Kartik Mehta – FTN Equity Markets
And you talked a little bit about market share loss and I am trying to figure out how much would you say your market share loss is to independents versus branded companies?
Mike Yerington
You know, I don’t know the answer to that question. I think that we’ve lost some market share across the board. I think if you had to put it in perspective, I think independents are probably – in most of territories we compete with 35 independents to one of our stores. We compete, for example, with Block, with about three to four stores to one of our stores. So, I think there is probably some impact from both those as well as other players.
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