How many franchised Ella Cafe outlets were operating at the end of 2022?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| Coffee House Type | Year | Net Change | ||
|---|---|---|---|---|
| Outlets at the Start of the Year | Outlets at the End of the Year | |||
| Franchised | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | |
| Company-Owned | 2021 | 1 | 1 | 0 |
| 2022 | 1 | 1 | 0 | |
| 2023 | 1 | 2 | +1 | |
| Total Coffee Houses | 2021 | 1 | 1 | 0 |
| 2022 | 1 | 1 | 0 | |
| 2023 | 1 | 2 | +1 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–49)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, there were no franchised outlets operating at the end of 2022. The provided tables show the status of franchised outlets from 2021 to 2023. In 2021, there were zero franchised locations at both the start and end of the year. The same is true for 2022 and 2023, with zero franchised locations at the beginning and end of each year.
This indicates that Ella Cafe's franchise system was either very new or not yet operational with franchisees during this period. A prospective franchisee should note that the data suggests the franchise model may not have been fully tested or established during these years. This could present both risks and opportunities, as an early franchisee might have more influence but also faces greater uncertainty.
It's important to note that while there were no franchised locations, Ella Cafe did operate company-owned outlets. In 2021 and 2022, there was one company-owned outlet. This increased to two in 2023. This demonstrates that Ella Cafe had some operational experience, even if the franchise model was not yet implemented. A potential franchisee should inquire about the performance of these company-owned stores to better understand the business model's viability.
In summary, the absence of franchised Ella Cafe locations in 2021, 2022, and 2023 suggests that the franchise system was in its early stages. A prospective franchisee should conduct thorough due diligence to assess the risks and opportunities associated with joining a relatively new franchise system.