What was the net change in the number of company-owned Azal Coffee outlets during 2023?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | |
| Company | 2021 | 0 | 0 | 0 |
| Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 1 | 1 | |
| Total Outlets | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | |
| 2023 | 0 | 1 | 1 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 48–50)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the net change in the number of company-owned outlets during 2023 was an increase of 1. The number of company-owned Azal Coffee outlets at the start of 2023 was 0, and the number at the end of the year was 1.
This indicates that Azal Coffee added one company-owned store during 2023. For a prospective franchisee, this could signal the beginning of a growth phase for the company, although it is important to note that the franchise program itself did not begin until July 2024. The addition of a company-owned store could be a test location or a flagship store to help build brand recognition.
It's important for potential franchisees to monitor the growth and performance of both company-owned and franchised locations. While the addition of a single company-owned store may not be significant on its own, it's a data point to consider alongside other information in the FDD and during discussions with the franchisor and existing franchisees. Understanding the strategy behind company-owned stores can provide valuable insight into Azal Coffee's overall business model and growth plans.