How many Belocal outlets ceased operations for other reasons in Arizona during 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 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 59–70)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, two Belocal outlets in Arizona ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor during 2023. At the start of 2023, there were eight Belocal outlets in Arizona. During the year, two new outlets opened, but two ceased operations for other reasons, resulting in eight outlets at the end of the year.
'Ceased operations - other reasons' can include a variety of circumstances that lead to a Belocal franchise closing. These could range from the franchisee's personal circumstances, such as illness or relocation, to business-related challenges like failing to meet performance standards, disputes between partners, or local economic downturns that make the location unprofitable. It is important to note that these closures are distinct from terminations (franchise agreement ended by the franchisor), non-renewals (franchise agreement not renewed at the end of its term), and re acquisitions by Belocal.
For a prospective Belocal franchisee, this data highlights the importance of thoroughly researching the specific location and market conditions in Arizona. Understanding why previous outlets may have closed, even for 'other reasons,' can provide valuable insights into potential challenges and opportunities. It would be prudent to discuss with Belocal the specific reasons for these closures to better assess the risks and rewards of investing in a franchise in Arizona.
Industry-wide, franchise closures are a common occurrence, and the reasons can vary widely. While a few closures do not necessarily indicate a failing franchise system, it is essential to investigate the specific circumstances and trends to make an informed decision. Reviewing Item 20 data over several years, as presented in the FDD, can provide a more comprehensive understanding of the stability and performance of Belocal franchises in different regions.