Generation Next Franchise Brands Inc. (fka VEND)

[Officiousintermeddle]

Fair enough, Johnny Tarr.

So, let's say they achieve the high end for installs through December 31, 2019.

And, let's assume that they pull off the 40 cups/day average that they did with the first 3 kiosks (that included the Houston Space Center and a couple of other darn good locations).

And let's assume that the average price per cup gets up to $5.

That means that the royalty run rate as of January 1, 2020 will be a not shabby at all $10.3 million / year. Add a few hundred thousand for the rebates on all the consumables, and you're up to $10.6 million/year.

On the other hand, if the average rate per kiosk remains at a lousy 7.2 cups/day, then the installation of even 1180 machines won't save the day. That only gets you to an annual royalty rate of $1.9 million plus rebates on consumables, which won't be much.

So, you're right - if they get the installs in at no profit and manage to survive long enough to see the day, things will be OK, provided that the average rate of sales per kiosk is more like 40 and less like 7.2. And if it comes in somewhere in the middle? Well, that's not gonna cover operating expenses, I'm afraid. So, it seems that it really is a matter of matching the performance of the first 3 machines they put out there.

As they say in real estate, it's all about location, location, location?