understand......the visibility to company owned stores / results / forecasts is more clear and direct. but normally there is a reasonable correlation and franchisees should do reasonably well also.
I dont't think franchisees dumped on this news; they benefit from brand expansion and success.
The dumpers are the larger eqquity firms like Mistral. Every time we get a nice pop, they come in and ruin the party. Eventually they will have fully dumped their bowels, and we can move on without them.
OK, let's address your thesis. In Q1, JMBA system-wide SSS were +11.6%. That was comprised of +12.7% for Company Stores and +10.5% for Franchise Stores. Clearly, franchise stores slightly underperformed company stores in Q1. However, I believe +10.5% would be considered a very good number by almost any standard. Further, if you go back and examine previous quarters, franchise stores actually outperformed company stores in some of them.