What was the net change in the number of company-owned Chocolate Bash outlets during 2023?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
emwide Outlet Summary For years 2021 to 2023**
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2021 | 1 | 2 | +1 |
| 2022 | 2 | 4 | +2 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 35–38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the net change in the number of company-owned outlets during 2023 was 0. The FDD provides a system-wide outlet summary that includes both franchised and company-owned locations. For company-owned Chocolate Bash locations, the number at the start of 2023 was 3, and the number at the end of 2023 remained at 3. This indicates that no new company-owned stores were opened, and no existing ones were closed or sold during that year.
For a prospective franchisee, this data point can be useful in understanding Chocolate Bash's business model and growth strategy. The fact that the number of company-owned stores remained constant while the number of franchised locations increased suggests a strategic focus on expanding through franchising rather than direct corporate investment. This could mean that Chocolate Bash is more focused on collecting franchise fees and royalties than on managing and growing its own retail operations.
It is important to note that while there was no net change in the number of company-owned stores, this does not necessarily mean that the performance of these stores was stagnant. It would be beneficial for a potential franchisee to inquire about the revenue and profitability trends of the company-owned stores to get a more complete picture of their operational health. Additionally, understanding the reasons behind the lack of growth in company-owned stores could provide valuable insights into the franchisor's long-term vision and support for franchisees.
Overall, the stability in the number of company-owned Chocolate Bash outlets in 2023, as detailed in the FDD, highlights the brand's current reliance on franchise expansion. A prospective franchisee should consider this information in the context of their own investment goals and risk tolerance, and should seek further clarification from Chocolate Bash regarding their plans for corporate-owned locations in the future.