FDD ITEM 20 · FISCAL 2021–2023
AR HOMES Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2023), AR HOMES reported 42 franchised outlets at year end. 5 of 46 franchised outlets open at the start of the year left the system — an annualized exit rate of 10.9%— while 1 new outlets opened. Systemwide units moved 0.0% over 2021–2023.
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 46 | 42 | 46 |
| Opened | 1 | 5 | 1 |
| Transfers | 0 | 0 | 0 |
| Terminations | 1 | 0 | 5 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 4 | 1 | 0 |
| Outlets at end | 42 | 46 | 42 |
| Net change | -4 | +4 | -4 |
5 terminations + 0 non-renewals + 0 ceased (other) = 5 exits ÷ 46 at start = 10.9%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (0) are resales, not exits; reacquisitions by the franchisor (0) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.
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