FRANCHISE·WATCH·DESK

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.

Item 20 · outlet status by yearas filed
Status (FTC)202120222023
Outlets at start917976
Opened423
Transfers513
Terminations1353
Non-renewals402
Reacquired by franchisor000
Ceased — other reasons000
Outlets at end797674
Net change-12-3-2
How the exit count is computedfiscal 2023

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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