What was the net change in the number of franchised Crab N Spice outlets during 2022?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
| Outlet Type | Year | Column 3 | Column 4 | Net Change |
|---|---|---|---|---|
| Outlets at the Start of the Year | Outlets at the End of the Year | |||
| Franchised | 2021 | 2 | 5 | +3 |
| 2022 | 5 | 4 | -1 | |
| 2023 | 4 | 4 | 0 | |
| Company-Owned | 2021 | 3 | 3 | 0 |
| 2022 | 3 | 4 | +1 | |
| 2023 | 4 | 4 | 0 | |
| Total Outlets | 2021 | 5 | 8 | +3 |
| 2022 | 8 | 8 | 0 | |
| 2023 | 8 | 8 | 0 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 36–40)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, the net change in the number of franchised outlets during 2022 was -1. This means that Crab N Spice had one fewer franchised location at the end of 2022 than it did at the beginning of the year. Specifically, the number of franchised outlets decreased from 5 at the start of 2022 to 4 by the end of the year.
Another table in Item 20 provides a more detailed breakdown of outlet changes by state. System-wide, Crab N Spice had 5 franchised locations at the start of 2022, opened 1 new location, had 1 termination, and reacquired 1 location. This activity resulted in 4 franchised locations at the end of 2022.
For a prospective franchisee, this data indicates a slight contraction in the franchise system during 2022. It would be prudent to investigate the reasons behind the termination and reacquisition of franchised locations to understand the factors influencing franchise performance and stability within the Crab N Spice system. Understanding these factors can help a potential franchisee assess the risks and opportunities associated with investing in a Crab N Spice franchise.