How many company-owned Burros Fries outlets were sold to franchisees in California during 2021?
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 |
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, two company-owned Burros Fries outlets in California were sold to franchisees during the fiscal year 2021. At the start of 2021, there were 11 outlets in California. After selling two outlets to franchisees, and with no outlets opened, reacquired, or closed, the year ended with 9 outlets in California.
This information is valuable for potential franchisees as it provides insight into the brand's strategy regarding company-owned stores. The sale of company-owned stores to franchisees could indicate a focus on expanding through franchising, which might present opportunities for new franchisees to acquire existing, potentially profitable locations rather than starting from scratch.
However, it's important to note that the document does not specify the performance history or financial details of the outlets sold. A prospective franchisee should investigate the reasons behind these sales and conduct thorough due diligence to assess the potential profitability and risks associated with acquiring a previously company-owned location. Understanding the reasons for the sale, the condition of the outlets, and the terms of the transfer are crucial steps in making an informed investment decision.