How many Fitstop franchised outlets ceased operations for reasons other than termination or non-renewal during 2023?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non- Renewals | Reacquired by Franchisor | Ceased Operations Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Totals | 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–49)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, there were zero franchised outlets that ceased operations for reasons other than termination or non-renewal during 2023. This data is presented in a table summarizing outlet information from 2021 to 2023. The columns include 'Outlets at Start of Year', 'Outlets Opened', 'Terminations', 'Non-Renewals', 'Reacquired by Franchisor', 'Ceased Operations Other Reasons', and 'Outlets at End of the Year'.
For a prospective franchisee, this indicates that, at least during the period of 2021-2023, Fitstop has not experienced any franchise closures due to reasons outside of the typical termination or non-renewal of agreements. This could be a positive sign, suggesting stability within the franchise system. However, it is important to consider that the brand is relatively new, so the limited operating history may not be fully indicative of future performance.
It is also important to note that the FDD states that as of December 31, 2023, Fitstop did not have any System franchisees to disclose in Exhibit D. This means that Fitstop is a relatively new franchise system, and the data presented may not be representative of a more mature franchise system. A prospective franchisee should investigate further to understand the reasons behind this and the potential implications for their investment.