How many Gold Star outlets were reacquired from franchisees in Ohio during 2021?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 2024 | 1 | | OHIO | 2022 | 1 | | | 2023 | 0 | | | 2024 | 0 | | TOTAL | 2022 | 1 | | | 2023 | 3 | | | 2024 | 1 |
TABLE NO. 4
STATUS OF COMPANY-OWNED OUTLETS
FOR YEARS 2020-2024
| STATE | YEAR | OUTLETS AT THE START OF YEAR | OUTLETS OPENED | OUTLETS REAQUIRED FROM FRANCHISEE | OUTLETS CLOSED | OUTLETS SOLD TO FRANCHISEE | OUTLETS AT END OF YEAR |
|---|---|---|---|---|---|---|---|
| 2020 | 2 | 0 | 1 | 0 | 0 | 3 | |
| 2021 | 3 | 0 | 0 | 0 | 1 | 2 | |
| KENTUCKY | 2022 | 2 | 0 | 0 | 0 | 0 | 2 |
| 2023 | 2 | 0 | 0 | 1 | 0 | 1 | |
| 2024 | 1 | 0 | 0 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 48–52)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, one outlet in Ohio was reacquired from a franchisee during 2021. This information is detailed in the Item 20 table, which provides a breakdown of outlet activity by state and year.
This data point is important for prospective franchisees as it offers insight into the stability and performance of existing Gold Star franchises. Reacquisitions can occur for various reasons, such as the franchisee's failure to meet performance standards, voluntary surrender of the franchise, or other contractual issues. Understanding the frequency and reasons behind reacquisitions can help a potential franchisee assess the risks and opportunities associated with investing in a Gold Star franchise.
Reviewing trends in outlet reacquisitions, closures, and transfers over several years, as presented in the FDD, can provide a more comprehensive understanding of the franchise system's health. A high number of reacquisitions or closures could indicate underlying issues within the franchise, while a stable or decreasing trend may suggest a more robust and supportive environment. It's also worth noting that while one reacquisition occurred, two outlets were sold to franchisees in Ohio during 2021, indicating some level of franchise growth and transfer of ownership.
Prospective franchisees should consider this information in conjunction with other data in the FDD, such as franchisee turnover rates, financial performance representations, and litigation history, to form a well-rounded assessment of the Gold Star franchise opportunity. Additionally, speaking with current and former franchisees can provide valuable qualitative insights into the factors driving outlet reacquisitions and overall franchisee satisfaction.