Company: TGE
Filing Date: 2025-07-03
Form Type: F-1/A
Source: 0001213900-25-061211
Chunk: 61

Company: Generation Essentials Group
Filing Date: 2025-07-03
Form: F-1/A
Chunk 61
---
 adversely affect our operating results.

If we experience significant
disruptions in our printing and distribution channels, or a significant increase in the costs to print and distribute our print publications,
our reputation and operating results may be adversely affected. Furthermore, if the audience base to our and other companies’ print
products declines, our and our vendors’ fixed costs to print and deliver paper products are spread over fewer paper copies. We may
be unable to offset these increasing per-unit costs, alongside decreasing print media audience base, with revenue from price increases,
and our operating results may be adversely affected.

We depend on certain
franchisees to produce and distribute our print publications.

We depend on our franchisees
to produce and distribute print publications in many geographies and receive royalties from these licenses. We rely on these franchisees
to maintain operational and financial control over their businesses. Should these franchisees fail to monitor and control their operations
adequately or if our relationship with them is disrupted or changed to our detriment, our income from royalties will decline.

The agreements with our franchisees
typically allow either party to terminate the relationship under certain conditions, including breaches of contractual obligations, failure
to meet performance standards, or other specified events. If our franchisees choose to terminate these agreements, we could experience
a loss of revenue, disruption in operations and damage to our brand reputation in the affected markets. Conversely, if we terminate the
franchise agreements, we may face legal disputes and reputational harm. If circumstances required that an existing franchisee be replaced,
we could face challenges in finding replacement franchisees and there can be no assurance that a replacement franchisee would be able
to contribute the same resources as the prior franchisee in terms of management, production and distribution. The necessity to replace
a franchisee and, in particular, an inability to replace a franchisee for any period of time would adversely affect our financial performance
both directly, from reduced royalties received, and indirectly, from reduced sales of our products. Our brands may also suffer if, as
a result, there is any delay or failure in the distribution of our content and products. Additionally, the termination of franchise relationships,
whether initiated by us or our franchisees, could result in the closure of locations, reduced market presence and increased operational
costs associated with transitioning ownership or management.

Although we regularly implement
royalty reviews of our franchisees, there can be no assurance that they will properly report royalty income or that such reviews will
reveal any non-compliance with the terms