What was the net change in the number of company-owned Crawl Space Ninja outlets during 2021?
Crawl_Space_Ninja 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 | 7 | 17 | +10 |
| 2022 | 17 | 21 | +4 | |
| 2023 | 21 | 18 | -3 | |
| Company – | 2021 | 5 | 2 | -3 |
| Owned* | ||||
| 2022 | 2 | 1 | -1 | |
| 2023 | 1 | 1 | 0 | |
| Total | 2021 | 12 | 19 | +7 |
| Outlets | ||||
| 2022 | 19 | 22 | +3 | |
| 2023 | 22 | 19 | -3 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 49–51)
What This Means (2024 FDD)
According to Crawl Space Ninja's 2024 Franchise Disclosure Document, the net change in the number of company-owned outlets during 2021 was -3. This means that Crawl Space Ninja had 5 company-owned outlets at the start of 2021 and ended the year with only 2 company-owned outlets.
For a prospective franchisee, this indicates that Crawl Space Ninja may be shifting away from operating company-owned stores and focusing more on franchising. This could mean more support and resources are directed towards franchisees. However, it could also mean less direct control and experimentation by the company in the market.
It's important for potential franchisees to understand why Crawl Space Ninja reduced its company-owned stores. Was it due to poor performance, a strategic decision to focus on franchising, or other factors? Understanding the reasons behind this change can provide valuable insights into the company's strategy and the potential risks and opportunities for franchisees.