How many Belocal outlets were reacquired by the franchisor in Kentucky during 2024?
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 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 59–70)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, there were two Belocal outlets in Kentucky that were reacquired by the franchisor during 2024. The table provided in Item 20 of the FDD details the changes in Belocal's outlet numbers across various states. In 2023, there were three outlets, which increased to three by the end of the year.
In 2024, Belocal reacquired two outlets in Kentucky. This means that these locations, which were previously operated by franchisees, were taken back under the direct control of Belocal. After reacquiring the two units, the number of outlets decreased to two by the end of 2024.
For a prospective franchisee, this information is relevant for a few reasons. First, it shows that Belocal does reacquire franchises, which could be due to various factors such as franchisee performance, strategic decisions, or other business reasons. Second, it provides insight into the stability and changes within the Belocal franchise system in specific geographic areas. Understanding the reasons behind these re acquisitions could be a crucial part of a franchisee's due diligence process.
It is important to note that reacquisition of a franchise does not necessarily reflect negatively on the franchise system as a whole. However, a prospective franchisee should investigate the reasons for re acquisitions in specific states like Kentucky to better understand the dynamics of the Belocal franchise network and assess any potential risks or opportunities.