What was the net change in the number of franchised Bombs Away outlets during 2023?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Outlet Type | Year | Column 3 | Column 4 | Net Change |
|---|---|---|---|---|
| Outlets at the Start of the Year | Outlets at the End of the Year | |||
| Franchised | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | |
| Company-Owned | 2021 | 1 | 1 | 0 |
| 2022 | 1 | 1 | 0 | |
| 2023 | 1 | 1 | 0 | |
| Total Outlets | 2021 | 1 | 1 | 0 |
| 2022 | 1 | 1 | 0 | |
| 2023 | 1 | 1 | 0 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the net change in the number of franchised outlets during 2023 was 0. The number of franchised Bombs Away outlets at the start of 2023 was 0, and the number of franchised Bombs Away outlets at the end of 2023 was 0, resulting in no net change. This indicates that there were no new franchises opened, no terminations, and no transfers that affected the total number of Bombs Away franchised locations during that year.
This lack of change in franchise outlet numbers could suggest a period of stability or potentially slow growth for the Bombs Away franchise system. For a prospective franchisee, this information is crucial as it provides insight into the brand's expansion trajectory and market presence. A static number of outlets might imply a cautious approach to franchising or could be indicative of challenges in attracting new franchisees or retaining existing ones.
It is important to note that while the total number of franchised outlets remained constant, this does not necessarily reflect the performance or health of individual franchise locations. A prospective franchisee should investigate further into the financial performance of existing Bombs Away franchises and the reasons behind the lack of growth in outlet numbers. Understanding these factors will help in assessing the potential risks and opportunities associated with investing in a Bombs Away franchise.
Furthermore, the FDD indicates that as of December 31, 2023, Bombs Away projected one new franchised outlet in Nevada and one in Arizona and California for the next fiscal year. This suggests a potential shift towards growth in the near future, although these are only projections and not guaranteed outcomes.