How many Desi District outlets were operating at the start of 2023 across all locations?
Desi_District 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 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | |
| Company-Owned | 2021 | 1 | 3 | +2 |
| 2022 | 3 | 5 | +2 | |
| 2023 | 5 | 5 | 0 | |
| Total Outlets | 2021 | 1 | 3 | +2 |
| 2022 | 3 | 5 | +2 | |
| 2023 | 5 | 5 | 0 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 49–52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, at the start of 2023, there were a total of 5 outlets operating. None of these were franchised locations. All 5 locations were company-owned.
Specifically, the FDD provides a system-wide outlet summary that breaks down the number of franchised and company-owned outlets at the beginning and end of each year from 2021 to 2023. This information allows potential franchisees to understand the growth and composition of the Desi District system over the past three years. The fact that all locations were company-owned at the start of 2023 indicates that Desi District may have been in a phase of establishing its brand through corporate-run stores before expanding through franchising.
For a prospective franchisee, this data highlights the importance of understanding Desi District's strategic approach to growth. It would be prudent to inquire about the reasons for the initial focus on company-owned stores and the subsequent plans for franchising. Understanding the historical context and the franchisor's future vision is crucial for making an informed investment decision.