What was the net change in the number of total Desi District outlets during 2023?
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, the net change in the number of total outlets during 2023 was 0. The total number of Desi District outlets remained constant throughout 2023, with 5 outlets at both the start and the end of the year. All of these locations were company-owned, as there were zero franchised locations during this period.
Specifically, at the beginning of 2023, Desi District had 5 company-owned outlets. Throughout the year, there were no new openings, closures, or any other changes affecting the number of company-owned stores. Consequently, the year concluded with the same 5 company-owned outlets, resulting in a net change of zero for the year.
For a prospective franchisee, this data indicates that Desi District's growth has been limited, with no new franchised locations established as of 2023. The brand's reliance on company-owned stores may reflect a cautious approach to franchising or could suggest challenges in attracting or supporting franchisees. It is important to note that the FDD also includes projections for new franchised outlets in the next fiscal year, 2024, which may signal a shift in the company's growth strategy.