FRANCHISE·WATCH·DESK

FDD ITEM 20 · FISCAL 2013–2025

FranNet Item 20: outlets, closures & growth

In its latest FDD Item 20 (fiscal 2025), FranNet reported 58 franchised outlets at year end. 7 of 64 franchised outlets open at the start of the year left the system — an annualized exit rate of 10.9%— while 1 new outlets opened. Systemwide units moved -15.9% over 2013–2025.

Item 20 · outlet status by yearas filed
Status (FTC)201320142015201720182019202320242025
Outlets at start525557555756696964
Opened430310541
Transfers024853010
Terminations000210387
Non-renewals000010110
Reacquired by franchisor002000000
Ceased — other reasons110000100
Outlets at end555755575656696458
Net change+3+2-2+2-100-5-6
How the exit count is computedfiscal 2025

7 terminations + 0 non-renewals + 0 ceased (other) = 7 exits ÷ 64 at start = 10.9%

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.

Franchised outlets by state · fiscal 202539 states/territories
StateFranchisedCompany-owned
FL50
TX50
Canada40
CA30
NJ30
NY30
AZ20
CO20
DC20
IA20
IL20
IN20
KY20
MO20
OH20
AK10
GA10
ID10
KS10
LA10
MA10
MD10
MI10
MN10
NC10
NE10
OR10
PR10
SC10
TN10
VA10
WA10
CT00
DE00
HI00
OK00
PA00
RI00
WV00
Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing FranNet's numbers, including talking you out of a bad deal.

Talk to an independent CPA before you buy →