What was the net change in the number of franchised Gold Star outlets during 2023?
Gold_Star 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 | 58 | 52 | -6 |
| 2023 | 52 | 51 | -1 | |
| 2024 | 51 | 48 | -3 | |
| COMPANY | 2022 | 7 | 7 | 0 |
| OWNED | ||||
| 2023 | 7 | 8 | 1 | |
| 2024 | 8 | 9 | 1 |
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, the net change in the number of franchised outlets during 2023 was -1. This means that Gold Star had one fewer franchised location at the end of 2023 than it did at the beginning of the year. At the start of 2023, there were 52 franchised outlets, and by the end of the year, the number decreased to 51.
This decrease in franchised outlets could be due to several factors, such as closures, terminations, or non-renewals of franchise agreements. It is important to note that while the number of franchised locations decreased, the number of company-owned outlets increased by 1 during the same period. This could indicate a strategic shift by Gold Star towards more company-owned operations.
A prospective franchisee should investigate the reasons behind the net decrease in franchised locations. Understanding whether the closures were due to poor performance, disputes with the franchisor, or other factors can provide valuable insight into the health and stability of the Gold Star franchise system. It would also be prudent to compare these figures with previous years and industry averages to assess whether this trend is typical or a cause for concern.
Overall, while a decrease in franchised outlets is not necessarily a negative sign, it warrants further investigation to ensure that the Gold Star franchise system is stable and that franchisees are generally successful. Prospective franchisees should discuss these trends with the franchisor and current franchisees to gain a comprehensive understanding of the franchise's performance and potential risks.