For what 'other reasons' did 49 Belocal outlets cease operations in 2023?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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| 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 | 2 | 8 |
| 2024 | 8 | 1 | 0 | 0 | 0 | 1 | 8 | |
| 2025 | 8 | 2 | 0 | 0 | 0 | 2 | 8 | |
| Arkansas | 2023 | 1 | 1 | 0 | 0 | 0 | 1 | 1 |
| 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | |
| 2025 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| California | 2023 | 8 | 10 | 0 | 0 | 0 | 5 | 13 |
| 2024 | 13 | 6 | 1 | 0 | 0 | 10 | 8 | |
| 2025 | 8 | 7 | 0 | 0 | 0 | 7 | 8 | |
| Colorado | 2023 | 8 | 0 | 0 | 0 | 0 | 2 | 6 |
| 2024 | 6 | 1 | 0 | 0 | 0 | 0 | 7 | |
| 2025 | 7 | 4 | 0 | 0 | 0 | 2 | 9 | |
| Connecticut | 2023 | 3 | 0 | 0 | 0 | 0 | 1 | 2 |
| 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 | |
| 2025 | 2 | 1 | 0 | 0 | 0 | 2 | 1 | |
| District of | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Columbia | ||||||||
| 2024 | 0 | 1 | 0 | 0 | 0 | 1 | 0 | |
| 2025 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | |
| Florida | 2023 | 15 | 5 | 0 | 0 | 0 | 4 | 16 |
| 2024 | 16 | 8 | 0 | 0 | 1 | 10 | 13 | |
| 2025 | 13 | 9 | 0 | 0 | 0 | 12 | 10 | |
| Georgia | 2023 | 6 | 0 | 0 | 0 | 0 | 2 | 4 |
| 2024 | 4 | 3 | 0 | 0 | 0 | 2 | 5 | |
| 2025 | 5 | 5 | 0 | 0 | 0 | 3 | 7 | |
| Idaho | 2023 | 2 | 1 | 0 | 0 | 0 | 1 | 2 |
| 2024 | 2 | 2 | 0 | 0 | 1 | 3 | 0 | |
| 2025 | 0 | 2 | 0 | 0 | 0 | 2 | 0 | |
| Illinois | 2023 | 11 | 1 | 0 | 0 | 0 | 3 | 9 |
| 2024 | 9 | 0 | 0 | 0 | 0 | 1 | 8 | |
| 2025 | 8 | 3 | 0 | 0 | 1 | 3 | 7 | |
| Indian |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 59–70)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a total of 49 Belocal outlets ceased operations for "other reasons" during 2023. The FDD provides a table that breaks down these closures by state. For example, in California, 5 outlets closed for "other reasons", while in Florida, 4 outlets closed for the same reason. Other states that experienced closures for "other reasons" include Arkansas, Arizona, Colorado, Connecticut, Georgia, Idaho, Illinois, Massachusetts, Michigan, Missouri, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia and Washington.
The category "Ceased Operations - Other Reasons" is a catch-all for closures that don't fall under specific categories like terminations, non-renewals, or re acquisitions by the franchisor. These "other reasons" could include a variety of factors such as poor performance, disputes between partners, landlord issues, or the franchisee's decision to pursue other business ventures. The specific reasons are not detailed in this table, but the fact that so many closures fall into this category suggests potential instability or challenges within the Belocal franchise system.
A prospective Belocal franchisee should carefully consider the number of closures for "other reasons" when evaluating the franchise opportunity. It would be prudent to ask Belocal for more detailed information about the specific reasons for these closures and what steps the company is taking to address the underlying issues. Understanding the factors that contribute to these closures can help a franchisee assess the risks and potential challenges of operating a Belocal franchise in a particular market. This information, combined with thorough due diligence, can inform a more balanced investment decision.