For Coffee News, what does 'Reacquired by Franchisor' mean in this table?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non- Renewals | Reacquired by Franchisor | Ceased Operations – Other reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Grand Total | 2022 | 487 | 3 | 80 | 0 | 0 | 47/-8* | 355 |
| 2023 | 355 | 15 | 32 | 0 | 0 | 5* | 333 | |
| 2024 | 333 | 10 | 36 | 0 | 0 | 0 | 307 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 28–35)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the tables provided in Item 20 include a column labeled 'Reacquired by Franchisor.' This column indicates instances where Coffee News itself has taken over a previously franchised outlet. In other words, instead of the franchise being sold to a new franchisee, Coffee News has chosen to operate the location directly.
For a potential Coffee News franchisee, a high number in the 'Reacquired by Franchisor' column could suggest that Coffee News frequently buys back franchises, which may be due to performance issues, strategic decisions, or other factors. Conversely, a consistent zero, as is the case in these tables, may indicate that Coffee News prefers to keep franchises in the hands of franchisees rather than operating them directly.
It is important to note that the tables provided show '0' for 'Reacquired by Franchisor' for all states and years from 2022 to 2024. This means that, at least for the period covered by this data, Coffee News did not reacquire any of its franchised outlets. A prospective franchisee should discuss with Coffee News the circumstances under which the company might reacquire a franchise and what options a franchisee has if they wish to exit the business.