What was the total number of Coffee News outlets that ceased operations for other reasons in the U.S. during 2022?
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 |
|---|---|---|---|---|---|---|---|---|
| Total in United | 2022 | 293 | 3 | 80 | 0 | 0 | 0 | 216 |
| States and | ||||||||
| Central America | ||||||||
| 2023 | 216 | 9 | 29 | 0 | 0 | 5* | 191 | |
| 2024 | 191 | 9 | 32 | 0 | 0 | 0 | 168 |
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, in 2022, zero Coffee News outlets in the United States ceased operations for reasons other than terminations, non-renewals, or reacquisition by the franchisor. This suggests that during that year, all closures were due to specific, documented reasons like franchise agreement breaches or decisions not to renew.
For a prospective franchisee, this could indicate a stable franchise system where closures are primarily due to performance-related issues or strategic decisions rather than unforeseen external factors. It is important to note that while 'other reasons' is zero for 2022, the total number of terminations was 80. This indicates a relatively high number of franchise terminations, which could be a point of concern.
It would be prudent for potential franchisees to investigate the reasons behind these terminations and understand what factors contribute to franchise success and failure within the Coffee News system. Further due diligence, including speaking with current and former franchisees, is advisable to gain a comprehensive understanding of the franchise's operational dynamics and potential challenges.