3 unchanged sentences
The Company leases the premises in which approximately 79% of its franchisees operate and has entered into corresponding sublease arrangements with these franchisees.
−Removed: Generally, these leases have a one to 11-year initial term and one or more five to 10-year renewal options.
+Added: Generally, these leases have a one to ten-year initial term and one or more five to ten-year renewal options.
All lease costs are passed through to the franchisees.
1 unchanged sentence
As leases renew, the Company intends for franchisees to sign the non-Walmart leases directly so it will no longer be the primary tenant.
−Removed: In fiscal year 2022, the Company exited its distribution centers located in Chattanooga, Tennessee and Salt Lake City, Utah and signed agreements to sublease the facilities in the short-term before a full lease novation in fiscal years 2023 and 2024.
−Removed: The Company also exited its Fremont, California office in fiscal year 2023 and the lease obligation expired on September 30, 2024.
+Added: As a result of having assigned its interest in obligations under certain real estate leases directly to franchisees, the Company is secondarily liable on such lease agreements as guarantor.
The Company operates all its company-owned salons under lease agreements with original terms of one to five years, generally with the ability to renew at the Company's option, for one or more additional three to five-year periods.
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.