How many Belocal outlets ceased operations for other reasons in Iowa 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 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 59–70)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, one Belocal outlet in Iowa ceased operations for "other reasons" during 2023. The table provided in Item 20 details the status of both franchised and company-owned Belocal outlets over the past three years. This closure resulted in the number of outlets in Iowa dropping from one at the start of 2023 to zero by the end of the year.
This data point is important for prospective franchisees as it provides insight into the stability and potential risks associated with operating a Belocal franchise in Iowa. Understanding the reasons behind such closures, if available, could further inform a franchisee's decision-making process. While the FDD specifies that the closure was for "other reasons", it does not elaborate on what those reasons might be.
It is fairly common for FDDs to track and report outlet closures, as this information is vital for potential investors. Closures can be due to a variety of factors, including poor performance, disputes between the franchisee and franchisor, or other unforeseen circumstances. A high number of closures can be a red flag, while a stable or growing number of outlets suggests a healthier franchise system. Therefore, a prospective Belocal franchisee should inquire with the franchisor to understand the specific reasons for the closure in Iowa and assess whether similar risks might affect their own potential franchise.
Given that there was only one Belocal location in Iowa during 2023, the closure represents a 100% loss of Belocal locations in the state for that year. This could indicate challenges specific to the Iowa market or other factors that a potential franchisee should carefully consider. It would be prudent to investigate the market conditions in Iowa and the support Belocal provides to its franchisees in that region before making a final investment decision.