Although the Company has not completed its financial statements for the fiscal quarter ended June 30, 2015, the Company anticipates decreases in revenues and net income for the current quarter compared to the corresponding period of 2014. The Company currently expects that its revenues will decrease by approximately 22% and 25%, respectively, for the three and nine months ended June 30, 2015 compared to the same periods in 2014. This expected change is primarily due to a decrease in the amount of initial franchise fees, partially offset by an increase in royalty fees. The Company expects that its net income will decrease by approximately 89% and 84%, respectively, for the three and nine months ended June 30, 2015 compared to the same periods in 2014, largely as a result of decreased revenue and even or slightly decreased operating expenses. Since the financial statements for the fiscal quarter ended June 30, 2015 are not yet completed, actual results may differ materially from the Company’s current expectations.
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