FDD ITEM 20 · FISCAL 2017–2019
ar workshop Item 20: outlets, exits & growth
In its latest FDD Item 20 (fiscal 2019, from the 2020 FDD · 5+ years old), ar workshop reported 130 franchised outlets at year end. 1 of 96 franchised outlets open at the start of the year left the system (exit rate 1.0%, fiscal 2019), while 35 new outlets opened. Systemwide units moved +195.6% over 2017–2019.
| Status (FTC) | 2017 | 2018 | 2019 |
|---|---|---|---|
| Outlets at start | 4 | 45 | 99 |
| Opened | 40 | 53 | 35 |
| Transfers | 0 | 1 | 10 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 1 |
| Outlets at end | 45 | 99 | 133 |
| Net change | +41 | +54 | +34 |
0 terminations + 0 non-renewals + 1 ceased (other) = 1 exits ÷ 96 at start = 1.0%
These are the three FTC Item 20 statuses in which a franchised outlet left the system — including voluntary non-renewals and outlets that ceased for other reasons, which can include sales or absorption into another franchise. Transfers (10) are resales, not exits; reacquisitions by the franchisor (0) are tracked separately. There is no official “failure rate”, and not every exit is a closure or a failure; Item 20 does not say why any outlet left. On a small starting base, a single exit moves this rate sharply.
| State | Franchised | Company-owned |
|---|---|---|
| NC | 12 | 3 |
| CA | 11 | — |
| FL | 11 | — |
| OH | 8 | — |
| SC | 8 | — |
| MI | 7 | — |
| PA | 7 | — |
| VA | 7 | — |
| GA | 6 | — |
| TN | 6 | — |
| MO | 5 | — |
| NJ | 5 | — |
| NY | 5 | — |
| TX | 5 | — |
| WA | 4 | — |
| AZ | 3 | — |
| MD | 3 | — |
| AL | 2 | — |
| CO | 2 | — |
| OK | 2 | — |
| CT | 1 | — |
| IA | 1 | — |
| ID | 1 | — |
| IN | 1 | — |
| KS | 1 | — |
| MT | 1 | — |
| NH | 1 | — |
| OR | 1 | — |
| SD | 1 | — |
| UT | 1 | — |
| WI | 1 | — |
| IL | 0 | — |
| KY | 0 | — |
| NV | 0 | — |
The ar workshop validation checklist
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