What was the net change in franchised Dq Treat outlets in 2023?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 828 | 789 | -39 |
| 2023 | 789 | 751 | -38 | |
| 2024 | 751 | 727 | -24 | |
| Company-Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 828 | 789 | -39 |
| 2023 | 789 | 751 | -38 | |
| 2024 | 751 | 727 | -24 |
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 289 | 376 | 87 |
| 2023 | 376 | 371 | -5 | |
| 2024 | 371 | 358 | -13 | |
| Company-Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 289 | 376 | 87 |
| 2023 | 376 | 371 | -5 | |
| 2024 | 371 | 358 | -13 |
Source: Item 20 — UItem 20U***:** U**Outlets and Franchisee Information (FDD pages 56–67)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the net change in the number of franchised outlets during 2023 was -38 for direct-licensed outlets. This means that Dq Treat had 38 fewer franchised locations at the end of 2023 than it had at the beginning of the year. For subfranchised territory operator outlets, the net change in 2023 was -5. Therefore, the total net change in franchised Dq Treat outlets in 2023 was -43.
For a prospective franchisee, this indicates a contraction in the number of Dq Treat franchised locations. While not necessarily indicative of poor performance, it could suggest that some franchisees are choosing not to renew their agreements, are being terminated, or are ceasing operations for other reasons. It is important to investigate the reasons behind this net decrease to understand the health and stability of the Dq Treat franchise system.
It would be prudent for a potential franchisee to inquire about the specific reasons for the outlet closures and net decrease. Understanding whether closures are due to factors like poor location selection, franchisee performance issues, or broader market trends is crucial for assessing the risks and opportunities associated with investing in a Dq Treat franchise. Additionally, reviewing the performance data of existing franchises and speaking with current franchisees can provide valuable insights into the overall profitability and sustainability of the business model.