How many Belocal outlets in California ceased operations for other reasons in 2023?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
5
| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non- Renewals | Reacquired by Franchisor | Ceased Operations - Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
| Alabama | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| 2024 | 1 | 2 | 0 | 0 | 0 | 0 | 3 | |
| 2025 | 3 | 2 | 0 | 0 | 1 | 2 | 2 | |
| Arizona | 2023 | 8 | 2 | 0 | 0 | 0 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 59–70)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, in 2023, 5 Belocal outlets in California ceased operations for reasons other than terminations, non-renewals, or reacquisition by the franchisor. This is based on the data provided in Item 20, which details outlet information for the years 2023 to 2025. At the start of 2023, there were 8 Belocal outlets in California. During the year, 10 new outlets opened, but 5 ceased operations for other reasons, resulting in 13 outlets at the end of the year.
'Ceased Operations - Other Reasons' typically includes closures due to factors like poor performance, failure to meet brand standards, or other breaches of the franchise agreement that don't result in a formal termination. It's important to note that a relatively high number of closures for 'other reasons' could indicate underlying issues with location selection, franchisee training, or overall support provided by Belocal.
A prospective Belocal franchisee should investigate the reasons behind these closures to better understand the risks and challenges of operating a franchise in California. Understanding the specific factors that led to these closures can help a franchisee avoid similar pitfalls and improve their chances of success. This information is crucial for making an informed investment decision and assessing the overall health and stability of the Belocal franchise system in California.