FDD ITEM 20 · FISCAL 2021–2023
Clozetivity Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2023), Clozetivity reported 57 franchised outlets at year end. 9 of 26 franchised outlets open at the start of the year left the system — an annualized exit rate of 34.6%— while 40 new outlets opened. Systemwide units moved +533.3% over 2021–2023.
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 0 | 9 | 27 |
| Opened | 9 | 21 | 40 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 4 | 9 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 9 | 27 | 57 |
| Net change | +9 | +18 | +30 |
9 terminations + 0 non-renewals + 0 ceased (other) = 9 exits ÷ 26 at start = 34.6%
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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