What was the total number of Deka Lash outlets that closed in 2023?
Deka_Lash 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 | 90 | 103 | +13 |
| 2022 | 103 | 123 | +20 | |
| 2023 | 123 | 130 | +7 | |
| Company-Owned* | 2021 | 6 | 5 | -1 |
| 2022 | 5 | 6 | +1 | |
| 2023 | 6 | 0 | -6 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 57–62)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a total of 5 franchised outlets and 6 company-owned outlets closed in 2023. This means that 11 Deka Lash locations were closed during the 2023 fiscal year.
For a prospective franchisee, these numbers highlight the importance of understanding the factors that contribute to outlet closures. While the closure of company-owned stores may not directly impact franchisees, it could signal broader issues within the company's corporate strategy or market performance. Franchisees should consider the reasons behind these closures, whether due to poor location choices, underperformance, or other factors.
Additionally, the FDD provides state-by-state data on outlet activity, including closures. Reviewing this information can help potential franchisees identify markets with higher closure rates, which may indicate increased risk or challenges in those areas. It is also important to note that the FDD includes lists of former franchisees, but some may have signed confidentiality agreements restricting their ability to discuss their experiences with Deka Lash. Therefore, due diligence and thorough market research are essential before investing in a Deka Lash franchise.