FDD ITEM 20 · FISCAL 2023–2025
GROUTSMITH Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2025), GROUTSMITH reported 46 franchised outlets at year end. 3 of 48 franchised outlets open at the start of the year left the system — an annualized exit rate of 6.3%— while 1 new outlets opened. Systemwide units moved -6.0% over 2023–2025.
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 50 | 50 | 49 |
| Opened | 1 | 5 | 1 |
| Transfers | 2 | 3 | 4 |
| Terminations | 1 | 6 | 3 |
| Non-renewals | 1 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 50 | 49 | 47 |
| Net change | 0 | -1 | -2 |
3 terminations + 0 non-renewals + 0 ceased (other) = 3 exits ÷ 48 at start = 6.3%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (4) 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.
| State | Franchised | Company-owned |
|---|---|---|
| FL | 14 | 1 |
| NC | 5 | — |
| PA | 5 | — |
| CA | 2 | — |
| MA | 2 | — |
| SC | 2 | — |
| TN | 2 | — |
| TX | 2 | — |
| AZ | 1 | — |
| DC | 1 | — |
| ID | 1 | — |
| KS | 1 | — |
| MN | 1 | — |
| MO | 1 | — |
| NE | 1 | — |
| NJ | 1 | — |
| NV | 1 | — |
| OK | 1 | — |
| VA | 1 | — |
| WI | 1 | — |
| GA | 0 | — |
| UT | 0 | — |
| WA | 0 | — |
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