What is the trend in the number of operating Gokhale Method outlets from 2021 to 2023?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| OutletType | Year | Outletsatthe StartoftheYear | Outletsatthe EndoftheYear | NetChange |
|---|---|---|---|---|
| Franchised | 2021 | 27 | 23 | -4 |
| 2022 | 23 | 22 | -1 | |
| 2023 | 22 | 20 | -2 | |
| Company-Owned | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | |
| TotalOutlets* | 2021 | 27 | 23 | -4 |
| 2022 | 23 | 22 | -1 | |
| 2023 | 22 | 20 | -2 |
Source: Item 20 — OUTLETS AND FRANCHISEE REPRESENTATIONS (FDD pages 30–34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the number of franchised outlets has decreased each year from 2021 to 2023. In 2021, there were 27 franchised outlets at the start of the year and 23 at the end, representing a net decrease of 4 outlets. In 2022, the number of franchised outlets started at 23 and ended at 22, a net decrease of 1 outlet. By 2023, the number further declined from 22 at the beginning of the year to 20 by year's end, reflecting a net decrease of 2 outlets. There were no company-owned Gokhale Method outlets during this period.
This steady decline in the number of franchised outlets could signal potential challenges within the Gokhale Method franchise system. Prospective franchisees should investigate the reasons behind these closures. Factors contributing to this trend could include low profitability, difficulties in managing the business, or lack of support from the franchisor. Understanding the reasons for these closures is crucial for potential franchisees to assess the risks and opportunities associated with investing in a Gokhale Method franchise.
It is important to note that these figures represent the total number of Gokhale Method outlets, and do not reflect the performance of individual locations. While the overall trend shows a decrease, some individual franchisees may still be operating successful businesses. A prospective franchisee should speak with current and former franchisees to understand their experiences and gain a more complete picture of the franchise system.
While the provided table offers a summary of outlet changes, additional tables in Item 20 provide further details, including outlet data by state and reasons for closures. Reviewing these supplementary tables can provide a more granular understanding of outlet performance and trends within specific geographic areas. This information can help potential franchisees identify areas with higher growth potential or potential challenges.