What was the net change in the number of company-owned Chocolate Fish Coffee outlets during 2023?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Column 4 | Net Change |
|---|---|---|---|---|
| Outlets at the End of the Year | ||||
| Franchised | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | |
| Company-Owned | 2021 | 3 | 3 | 0 |
| 2022 | 3 | 3 | 0 | |
| 2023 | 3 | 3 | 0 | |
| Total Outlets | 2021 | 2 | 3 | +1 |
| 2022 | 3 | 3 | 0 | |
| 2023 | 3 | 3 | 0 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 38–41)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the net change in the number of company-owned outlets during 2023 was 0. At the start of 2023, there were 3 company-owned outlets, and by the end of the year, the number remained at 3. This indicates that Chocolate Fish Coffee did not open or close any company-owned locations during that year.
For a prospective franchisee, this information provides insight into the growth strategy of Chocolate Fish Coffee. The fact that there was no net change in company-owned stores suggests that the company may be focusing more on franchising as a means of expansion, or that they are simply maintaining their current company-owned presence. It is also worth noting that the total number of outlets remained constant at 3, with no net change during 2023.
It's important to consider this data in conjunction with other information in the FDD, such as the number of franchised outlets and the company's plans for future growth. A potential franchisee should inquire about the reasons behind the lack of change in company-owned stores and whether this trend is expected to continue. Understanding the company's strategy for both company-owned and franchised locations can help a franchisee make an informed decision.
While the FDD indicates no change in company-owned stores, it also projects zero new company-owned outlets in the next fiscal year for Arizona and California. This reinforces the idea that Chocolate Fish Coffee may be prioritizing franchise growth over corporate expansion. A franchisee should discuss these projections with the franchisor to understand the long-term vision for the brand and how it might impact their investment.