In 2022, how many Burros Fries outlets were reacquired from franchisees?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Outlets Reacquired From Franchisees | Outlets Closed | Outlets Sold to Franchisees | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|
| CA | 2021 | 11 | 0 | 0 | 0 | 2 | 9 |
| 2022 | 9 | 0 | 1 | 0 | 2 | 8 | |
| 2023 | 8 | 0 | 0 | 0 | 1 | 7 | |
| AZ | 2021 | 0 | 1 | 0 | 0 | 0 | 1 |
| 2022 | 1 | 0 | 0 | 0 | 0 | 1 | |
| 2023 | 1 | 1 | 0 | 0 | 0 | 2 | |
| Totals | 2021 | 11 | 1 | 0 | 0 | 2 | 9 |
| 2022 | 9 | 0 | 1 | 0 | 2 | 8 | |
| 2023 | 9 | 1 | 0 | 0 | 1 | 9 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 50–53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, in 2022, one outlet was reacquired from a franchisee. This reacquisition occurred in California.
This information is valuable for potential franchisees as it provides insight into the stability and performance of existing franchise locations. Reacquisitions can occur for various reasons, such as the franchisee's failure to meet performance standards, a mutual agreement to terminate the franchise agreement, or the franchisee's decision to sell the business back to Burros Fries.
It is important to note that while one location was reacquired, two outlets were sold to franchisees in 2022. This suggests that while there may be instances where Burros Fries takes back a location, there are also opportunities for franchisees to transfer ownership to new franchisees. Prospective franchisees should inquire about the reasons for any reacquisitions and the process for transferring ownership to understand the potential risks and opportunities associated with the franchise.