Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• In 2021 alone, stores across our five resale brands purchased over 165 million items of clothing, toys, books, musical instruments and sports equipment. Our high-quality franchised stores give consumers an easier way to buy and sell used goods within their local communities without placing demands on wasteful production. In turn, this means less water and energy consumption, giving consumers a way to help cut down on pollution and greenhouse gas emissions.

Social Achievements

• Approximately 50% of our overall employee count and approximately 50% of our management team identify as female. Additionally, we provide training to our management team and employees regarding diversity and inclusion and we continue to actively work to increase representation among underrepresented demographic groups within our employee base.
• Our compensation programs are designed to support not only the financial, but the physical and mental well-being of our employees. In addition to our competitive salaries, our programs include, among other things, robust health and welfare benefits, a 401(k) plan with matching contribution, profit-sharing, generous paid leave policies, and an employee assistance program.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted system-wide sales and royalty revenues, most notably in 2020, due to temporary store closures, reduced customer traffic, and the need to adapt to new cleaning and safety standards.
• Competition in the retail industry, including from established retailers, discount chains, traditional stores, resale shops, and online marketplaces.
• Dependence on franchise renewals and new franchisees.
• Franchisees' dependence on the supply of used merchandise.
• Potential inability to collect accounts receivable from franchisees.
• Credit risk in the lease portfolio and the potential inadequacy of the allowance for credit losses.
• Restrictions in the line of credit and note facilities.
• Existing indebtedness and the need to generate sufficient cash flow to meet debt service obligations.
• Government regulation of franchising and leasing businesses.
• Data security risks.

Mitigation Strategies

• Developed an e-commerce platform to market and sell inventory online.
• Franchisees use social media and third-party marketplaces to drive non-store sales.
• Continued to enhance the franchise model and provide franchisees with technology, tools, and training.
• Renewed 99% of franchise agreements up for renewal in 2021.
• Developed relationships with significant vendors to provide franchisees with affordable new products.
• Maintains an allowance for credit losses to provide for estimated losses.
• Compliant with financial covenants under the line of credit and note facilities.
• Expects to generate cash necessary to pay expenses and debt service obligations from cash flows from operating activities.
• Believes it is in compliance with all material statutes and regulations applicable to its business.
• Implemented security systems to protect confidential information.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Developed relationships with significant vendors to provide franchisees with affordable new products.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Stores across our five resale brands purchased over 178 million items of clothing, toys, books, musical instruments and sports equipment in 2022, extending the lives of over one and a half billion items since 2010. This reduces water and energy consumption and cuts down on pollution and greenhouse gas emissions.

Social Achievements

• Approximately 50% of our overall employee count and approximately 50% of our management team identify as female. We provide training to our management team and employees regarding diversity and inclusion and we continue to actively work to increase representation among underrepresented demographic groups within our employee base. Compensation programs support financial, physical and mental well-being of employees, including robust health and welfare benefits, a 401(k) plan with matching contribution, profit-sharing, generous paid leave policies, and an employee assistance program.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Highly competitive retail industry with many competitors having substantially greater financial resources.
• Dependence on franchise renewals.
• Dependence on new franchisees.
• Franchisees' dependence on a supply of used merchandise.
• Potential inability to collect accounts receivable from franchisees.
• Restrictions in line of credit/term loan and note facilities.
• Existing indebtedness.
• Government regulation.
• Data security risks.

Mitigation Strategies

• Focus on value-oriented brands and name recognition.
• Renewed 100% of franchise agreements up for renewal in 2022.
• Continuously attracting new, qualified franchisees.
• Developing relationships with significant vendors to provide franchisees with affordable new products.
• Monitoring and managing accounts receivable.
• Maintaining compliance with financial covenants under debt facilities.
• Generating cash from operations and opportunistic use of other means to repay or refinance obligations.
• Maintaining compliance with all material statutes and regulations.
• Implementing security systems to protect confidential information.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Relationships with significant vendors for new products; negotiated prices for franchisees.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed