What is the trend in the number of company-owned Azal Coffee outlets from 2021 to 2023?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 20: OUTLETS AND FRANCHISEE INFORMATION]
Table No. 4 Status of Company-Owned Outlets For Years 2021 to 2023
| 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 number of company-owned outlets remained at zero for 2021 and 2022. In 2023, Azal Coffee opened one company-owned outlet, bringing the total to one at the end of the year. This indicates a growth in company-owned stores during this period.
For a prospective franchisee, this information suggests that Azal Coffee initially focused on establishing its business model without company-operated stores. The opening of a company-owned outlet in 2023 could signal a strategic shift, possibly to test new markets, refine operational procedures, or provide training locations.
It's important to note that Azal Coffee did not begin offering franchises until July 2024. The increase to one company-owned store in 2023 could be related to preparations for launching the franchise program. A potential franchisee should inquire about the reasons behind opening the company-owned store and how it impacts the franchise system.
Overall, the limited number of company-owned stores in the past might mean less direct operational experience available from the franchisor, compared to franchise systems with a long history of operating their own outlets. However, the recent opening could indicate a growing commitment to supporting franchisees with company-operated resources.