How many Belocal outlets terminated their franchise agreement in California 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 | 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, there was one Belocal franchise agreement terminated in California during 2024. This information is part of a larger table detailing outlet information across various states and years. The table includes data on outlets at the start of the year, outlets opened, terminations, non-renewals, outlets reacquired by the franchisor, outlets that ceased operations for other reasons, and outlets at the end of the year. This data provides a historical overview of Belocal's franchise network.
For a prospective franchisee, this statistic is crucial for assessing the stability and success rate of Belocal franchises in California. A high number of terminations could indicate issues with the franchise model, market conditions, or franchisor-franchisee relationships. Conversely, a low number, like the one termination reported, might suggest a more stable and successful franchise environment. It is important to note that 'terminations' specifically refer to instances where the franchise agreement was ended, which can occur for various reasons such as breach of contract, poor performance, or mutual agreement.
It is also important to consider the 'Ceased Operations - Other Reasons' column, which shows 10 outlets in California ceased operations for other reasons in 2024. These could include closures due to poor performance, relocation, or other business decisions not directly related to a breach of the franchise agreement. The combination of terminations and other ceased operations provides a more comprehensive picture of franchise turnover.
Prospective franchisees should investigate the reasons behind terminations and ceased operations to understand the potential risks and challenges of operating a Belocal franchise in California. Reviewing Exhibit D, as referenced in the FDD, may provide additional details about franchisees who have left the system. Additionally, speaking with current and former franchisees can offer valuable insights into the realities of running a Belocal franchise.