FDD ITEM 20 · FISCAL 2017–2019
Club Z! Item 20: outlets, exits & growth
In its latest FDD Item 20 (fiscal 2019, from the 2020 FDD · 5+ years old), Club Z! reported 383 franchised outlets at year end. 15 of 385 franchised outlets open at the start of the year left the system (exit rate 3.9%, fiscal 2019), while 38 new outlets opened. Systemwide units moved +4.1% over 2017–2019.
| Status (FTC) | 2017 | 2018 | 2019 |
|---|---|---|---|
| Outlets at start | 383 | 368 | 385 |
| Opened | 56 | 54 | 38 |
| Transfers | 15 | 16 | 27 |
| Terminations | 0 | 2 | 3 |
| Non-renewals | 0 | 8 | 12 |
| Reacquired by franchisor | 71 | 27 | 35 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 368 | 385 | 383 |
| Net change | -15 | +17 | -2 |
3 terminations + 12 non-renewals + 0 ceased (other) = 15 exits ÷ 385 at start = 3.9%
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 (27) are resales, not exits; reacquisitions by the franchisor (35) 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 |
|---|---|---|
| CA | 62 | 0 |
| FL | 46 | 0 |
| TX | 42 | 0 |
| MA | 18 | 0 |
| GA | 17 | 0 |
| IL | 17 | 0 |
| NY | 12 | 0 |
| MD | 11 | 0 |
| NC | 11 | 0 |
| NJ | 11 | 0 |
| OH | 11 | 0 |
| CO | 10 | 0 |
| VA | 10 | 0 |
| IN | 9 | 0 |
| PA | 8 | 0 |
| MO | 7 | 0 |
| MN | 5 | 0 |
| TN | 5 | 0 |
| AL | 4 | 0 |
| AZ | 4 | 0 |
| CT | 4 | 0 |
| NV | 4 | 0 |
| WA | 4 | 0 |
| MI | 3 | 0 |
| AR | 2 | 0 |
| DC | 2 | 0 |
| DE | 2 | 0 |
| HI | 2 | 0 |
| KY | 2 | 0 |
| LA | 2 | 0 |
| MT | 2 | 0 |
| NH | 2 | 0 |
| OK | 2 | 0 |
| OR | 2 | 0 |
| UT | 2 | 0 |
| WI | 2 | 0 |
| IA | 1 | 0 |
| ID | 1 | 0 |
| KS | 1 | 0 |
| ME | 1 | 0 |
| NE | 1 | 0 |
| NM | 1 | 0 |
| SC | 1 | 0 |
| AK | 0 | 0 |
| MS | 0 | 0 |
| PR | 0 | 0 |
| SD | 0 | 0 |
| VT | 0 | 0 |
| WV | 0 | 0 |
The Club Z! validation checklist
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