What was the net change in the number of company-owned Golden Krust Caribbean Restaurant outlets during 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| OUTLET TYPE | YEAR | OUTLETS AT THE START OF THE YEAR | OUTLETS AT THE END OF THE YEAR | NET CHANGE |
|---|---|---|---|---|
| Franchised | 2021 | 105 | 107 | +2 |
| 2022 | 107 | 107 | 0 | |
| 2023 | 107 | 106 | -1 | |
| Company | 2021 | 3 | 3 | 0 |
| Owned | ||||
| 2022 | 3 | 3 | 0 | |
| 2023 | 3 | 2 | -1 | |
| Total Outlets | 2021 | 108 | 110 | +2 |
| 2022 | 110 | 110 | 0 | |
| 2023 | 110 | 108 | -2 |
Source: Item 20 — LIST OF OUTLETS AND FRANCHISE INFORMATION (FDD pages 32–35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the net change in the number of company-owned outlets during 2023 was -1. This means that Golden Krust Caribbean Restaurant closed one more company-owned store than it opened during that year. At the start of 2023, there were 3 company-owned outlets, and by the end of the year, there were 2.
For a prospective franchisee, this indicates that Golden Krust Caribbean Restaurant may be focusing more on franchising than on expanding its own corporate footprint. It could also signal financial challenges or a strategic shift in how the company operates and grows. It is important to note that while the number of company-owned stores decreased, the number of franchised locations also decreased by one during 2023.
When evaluating this information, a potential franchisee should consider the overall trend in both company-owned and franchised locations. A decrease in both could indicate broader issues within the franchise system. However, it is also important to consider the specific reasons for these changes, which may not be fully detailed in the FDD. Further investigation and conversations with current and former franchisees are advisable to gain a comprehensive understanding of the system's health and stability.