FDD ITEM 20 · FISCAL 2021–2023
BAR METHOD Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2023), BAR METHOD reported 73 franchised outlets at year end. 5 of 75 franchised outlets open at the start of the year left the system — an annualized exit rate of 6.7%— while 3 new outlets opened. Systemwide units moved -6.3% over 2021–2023.
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 91 | 79 | 76 |
| Opened | 4 | 2 | 3 |
| Transfers | 5 | 1 | 3 |
| Terminations | 13 | 5 | 3 |
| Non-renewals | 4 | 0 | 2 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 79 | 76 | 74 |
| Net change | -12 | -3 | -2 |
3 terminations + 2 non-renewals + 0 ceased (other) = 5 exits ÷ 75 at start = 6.7%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (3) 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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