CLOSURES & DISTRESS · UPDATED NOVEMBER 3, 2026 · 658 SYSTEMS
Franchise closures & distress in 2026: what the filings show
Across the 658 franchise systems with a current FDD we have read, 12,173 franchised outlets were terminated, not renewed or ceased operating in the latest fiscal year — 5.6% of the 215,481 open at the start of the year — and 201 systems ended the year smaller than they started (FDD Item 20, filings 2024–2026). 9 current filings carry going-concern language about the franchisor or its parent (Item 21 or the state cover page).
12,173
outlets exited (Item 20)
5.6%
of franchised outlets
201
systems shrank
9
going-concern filings
Ratings, verdicts, scores and rankings on this site are opinions produced by a published method from public filings and loan records, much of it machine-extracted. They are not statements of fact about any company's financial condition, solvency or prospects, not a recommendation to buy, avoid or invest in any franchise, and not investment, legal or tax advice. How the method works.
Which franchises closed the most outlets?
Terminations, non-renewals and outlets that ceased for other reasons in the latest fiscal year, with the share of start-of-year outlets in brackets. Outlets the filing itself says kept operating under a sister brand or a neighbouring franchisee are not counted. Big systems lead because they are big — compare the rate.
| # | Brand | Outlets exited · Item 20 | Filing |
|---|---|---|---|
| 1 | Subway | 1,076 (5.5%) | 2026 FDD ↗ |
| 2 | HEALTH MART | 815 (18.8%) | 2026 FDD ↗ |
| 3 | JANI-KING | 399 (8.2%) | 2026 FDD ↗ |
| 4 | JAZZERCISE | 398 (7.6%) | 2026 FDD ↗ |
| 5 | Stroll, Greet | 328 (59.9%) | 2024 FDD ↗ |
| 6 | ZENSHI | 292 (13.2%) | 2025 FDD ↗ |
| 7 | ADVANCED FRESH CONCEPTS | 271 (6.7%) | 2024 FDD ↗ |
| 8 | RE/MAX | 266 (8.4%) | 2026 FDD ↗ |
| 9 | ANAGO OF MINNEAPOLIS | 244 (13.5%) | 2026 FDD ↗ |
| 10 | Good Neighbor Pharmacy | 211 (9.2%) | 2024 FDD ↗ |
Which franchises lost the largest share of their outlets?
Exits divided by franchised outlets at the start of the year; systems with at least 50 units. An exit is not necessarily a failure.
| # | Brand | Exit rate · Item 20 | Filing |
|---|---|---|---|
| 1 | ADVANCED FRESH CONCEPTS | 61.7% | 2024 FDD ↗ |
| 2 | Stroll, Greet | 59.9% | 2024 FDD ↗ |
| 3 | Ace Sushi (Non-Traditional) | 48.5% | 2026 FDD ↗ |
| 4 | BLINGLE! | 46.2% | 2025 FDD ↗ |
| 5 | BELOCAL | 46.1% | 2024 FDD ↗ |
| 6 | JDOG JUNK REMOVAL & HAULING | 43.2% | 2024 FDD ↗ |
| 7 | IFOAM | 41.4% | 2025 FDD ↗ |
| 8 | BOXDROP | 40.2% | 2026 FDD ↗ |
| 9 | Buddy's Home Furnishings | 36.3% | 2026 FDD ↗ |
| 10 | TGI FRIDAYS | 35.0% | 2026 FDD ↗ |
Which franchisors' own filings raise going-concern doubt?
- Bin Blasters — Going-concern paragraph in the auditor's report (2026 FDD)
- Goliathtech — Auditor's report points to management's going-concern doubt (2026 FDD)
- GYMGUYZ — Going-concern paragraph in the auditor's report (2026 FDD)
- INSTANT IMPRINTS — Going-concern paragraph in the auditor's report (2026 FDD)
- Perspire Sauna Studio — Substantial doubt disclosed in the notes (2026 FDD)
- Qargo Coffee — Going-concern paragraph in the auditor's report (2026 FDD)
- Snap Fitness — Auditor's report flags the parent's going-concern doubt (2026 FDD)
- Tire Pros — Going-concern risk on the state cover page (2026 FDD)
- UNITED COUNTRY REAL ESTATE — Auditor's report points to management's going-concern doubt (2026 FDD)
Whose SBA-backed franchisee loans charged off most, versus same-year loans?
| # | Brand | Loss ratio vs same-year loans | Loans |
|---|---|---|---|
| 1 | Dental Fix Rx | 6.0× | 54 |
| 2 | Experimac | 6.0× | 82 |
| 3 | WINDOW GENIE | 5.3× | 126 |
| 4 | FULLY PROMOTED | 4.4× | 62 |
| 5 | The Grounds Guys | 4.4× | 252 |
| 6 | Orange Leaf | 4.0× | 106 |
| 7 | The Extreme Pita | 3.5× | 35 |
| 8 | Executive Tans | 3.4× | 51 |
| 9 | Five Star Painting | 3.3× | 77 |
| 10 | Burgerim | 3.2× | 125 |
Which brands show several warning signs at once?
- I LOVE KICKBOXING — SBA loans approved FY2014–2020 charged off 2.6× the same-year rate (30 vs ~11 expected); FY2014–2020 loans alone 2.6×; fiscal 2023 exit rate 32.9% vs 5.2% median for comparable systems; units fell from 84 to 52 (2021–2023)
- 9ROUND — SBA loans approved FY2014–2020 charged off 2.5× the same-year rate (24 vs ~10 expected); FY2014–2020 loans alone 2.5×; fiscal 2025 exit rate 29.6% vs 5.2% median for comparable systems; units fell from 279 to 142 (2023–2025)
- College Hunks Hauling Junk — SBA loans approved FY2013–2020 charged off 2.4× the same-year rate (11 vs ~5 expected); FY2013–2020 loans alone 2.4×; fiscal 2025 exit rate 15.1% vs 11.1% median for comparable systems; units fell from 206 to 165 (2023–2025)
- Pop-A-Lock — fiscal 2025 exit rate 17.2% vs 7.4% median for comparable systems; units fell from 440 to 316 (2021–2025); its FDD reporting fiscal 2023 projected 3 new outlets for fiscal 2024 (Item 20 Table 5), and the next FDD reports 0 opened that year
- LINE-X — fiscal 2025 exit rate 27.2% vs 1.7% median for comparable systems; units fell from 446 to 142 (2021–2025); across fiscal 2024–2025 it opened 6 outlets against 30 projected in each prior year's FDD (Item 20 Table 5, as the next FDD reports them)
- JOHNNY ROCKETS — most exits were terminations or closures, not transfers; units fell from 119 to 100 (2021–2024); its FDD reporting fiscal 2023 projected 5 new outlets for fiscal 2024 (Item 20 Table 5), and the next FDD reports 2 opened that year
- TITLE BOXING CLUB — SBA loans approved FY2013–2020 charged off 1.8× the same-year rate (13 vs ~7 expected); FY2013–2020 loans alone 1.8×; fiscal 2025 exit rate 14.4% vs 5.2% median for comparable systems; units fell from 113 to 87 (2023–2025)
- The Glass Guru — fiscal 2025 exit rate 11.4% vs 7.4% median for comparable systems; units fell from 78 to 74 (2021–2025); its FDD reporting fiscal 2023 projected 12 new outlets for fiscal 2024 (Item 20 Table 5), and the next FDD reports 3 opened that year
- INTEGRA REALTY RESOURCES — most exits were terminations or closures, not transfers; units fell from 57 to 49 (2020–2025); its FDD reporting fiscal 2022 projected 2 new outlets for fiscal 2023 (Item 20 Table 5), and the next FDD reports 0 opened that year
- Long John Silver's — fiscal 2025 exit rate 8.9% vs 4.7% median for comparable systems; units fell from 635 to 479 (2021–2025); its FDD reporting fiscal 2023 projected 4 new outlets for fiscal 2024 (Item 20 Table 5), and the next FDD reports 1 opened that year
How many franchises are closing in 2026?
There is no official count. The best public source is Item 20 of each brand's Franchise Disclosure Document, which reports outlets terminated, not renewed and ceased for other reasons each year. Across the 658 franchise systems with a current FDD we have read, 12,173 franchised outlets were terminated, not renewed or ceased operating in the latest fiscal year — 5.6% of the 215,481 open at the start of the year — and 201 systems ended the year smaller than they started (FDD Item 20, filings 2024–2026). 9 current filings carry going-concern language about the franchisor or its parent (Item 21 or the state cover page).
What is the franchise failure rate?
No agency publishes one, and published figures disagree because they measure different things — SBA loan defaults, Item 20 exits, or survey estimates. Item 20 exits include relocations, conversions and planned restructurings, not just failures; SBA charge-offs only cover loan-financed units. We report each measure separately, with its source, rather than blending them into a single rate.
Which franchises have gone bankrupt?
We list a bankruptcy only after a person has matched the court docket to the franchisor's own legal entity — a franchisee's bankruptcy, or a similarly named company's, is not the franchisor's. Brand-level court records are on each brand's distress page. Item 3 of the FDD must also disclose franchisor bankruptcies in the past 10 years.
What does a going-concern warning in an FDD mean?
When the franchisor's auditor has substantial doubt that it can keep operating for another year, auditing standards require the report to say so. It is a statement about the franchisor's own finances (or, where noted, its parent's), not about any franchisee, and it does not mean the franchisor will fail. It is a reason to read Item 21 closely and ask how support and the brand fund would continue.
Where does this data come from?
FDD filings registered with state regulators (Minnesota CARDS and others), and the SBA 7(a)/504 loan record released under FOIA (FY1991 to date). Data as of November 3, 2026. Every row links to its source.
Figures are extracted from public filings and can contain errors. If one is wrong, tell us and we will check it against the filing.