What was the net change in the number of franchised Deck Medic outlets during 2023?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Outlet Type | Year | Outlets at the End of the Year | Net Change | |
|---|---|---|---|---|
| Franchised | 2021 | 10 | 11 | +1 |
| 2022 | 11 | 11 | 0 | |
| 2023 | 11 | 8 | -3 | |
| Company | 2021 | 3 | 3 | 0 |
| Owned | ||||
| 2022 | 3 | 3 | 0 | |
| 2023 | 3 | 4 | +1 | |
| Total Outlets | 2021 | 13 | 14 | +1 |
| 2022 | 14 | 14 | 0 | |
| 2023 | 14 | 12 | -2 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 39–42)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the net change in the number of franchised outlets during 2023 was -3. This means that the total number of franchised Deck Medic locations decreased by three during that year. At the beginning of 2023, there were 11 franchised outlets, but by the end of the year, the number had dropped to 8.
This decrease in franchised outlets could be due to several factors, such as franchisees not renewing their agreements, terminations, or transfers. For a prospective franchisee, this information highlights the importance of understanding the reasons behind outlet closures and the overall health of the franchise system. It would be prudent to investigate further into why these outlets closed and what Deck Medic is doing to support its franchisees and maintain a stable network.
It's also worth noting that while the number of franchised outlets decreased, the number of company-owned outlets increased by one during the same period. This could indicate a strategic shift by Deck Medic towards more company-owned operations, which might impact the opportunities and support available to franchisees. A potential franchisee should inquire about the franchisor's long-term strategy regarding the mix of franchised versus company-owned locations.
Overall, the decrease in franchised outlets in 2023 warrants careful consideration. A prospective Deck Medic franchisee should seek clarification from the franchisor regarding the reasons for this decline and the measures being taken to ensure the stability and growth of the franchise system.