What was the total net change in Chocolate Bash outlets (franchised and company-owned) during 2023?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 | |
| 2023 | 4 | 8 | +4 | |
| Company-Owned | 2021 | 3 | 3 | 0 |
| 2022 | 3 | 3 | 0 | |
| 2023 | 3 | 3 | 0 | |
| Total Outlets | 2021 | 4 | 5 | +1 |
| 2022 | 5 | 7 | +2 | |
| 2023 | 7 | 11 | +4 |
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 total net change in outlets during 2023 was an increase of 4. This figure encompasses both franchised and company-owned locations. Specifically, the number of franchised Chocolate Bash outlets increased by 4, while the number of company-owned outlets remained constant, resulting in no net change. Therefore, the overall system saw a net increase of 4 outlets.
For a prospective franchisee, this data indicates the growth trajectory of Chocolate Bash. The increase in franchised locations suggests that the franchise model is gaining traction and that franchisees are finding success and expanding. However, the lack of change in company-owned stores could suggest a strategic focus on franchising as the primary mode of expansion, or it could reflect other business decisions about capital allocation.
It's important to note that while the total number of outlets increased, this doesn't reveal the entire picture. For example, the table does not indicate how many outlets may have closed or terminated their agreements during the year. A more detailed analysis would involve looking at the gross number of openings versus closures to understand the true dynamics of the Chocolate Bash system. A potential franchisee should inquire about store closures and reasons for closures to get a better understanding of the health of the franchise system.