FDD ITEM 20 · FISCAL 2017–2019
Hammer & Nails Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2019), Hammer & Nails reported 11 franchised outlets at year end. 2 of 9 franchised outlets open at the start of the year left the system — an annualized exit rate of 22.2%— while 3 new outlets opened. Systemwide units moved +266.7% over 2017–2019.
| Status (FTC) | 2017 | 2018 | 2019 |
|---|---|---|---|
| Outlets at start | 1 | 3 | 9 |
| Opened | 2 | 8 | 3 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 0 | 1 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 1 |
| Outlets at end | 3 | 9 | 11 |
| Net change | +2 | +6 | +2 |
1 terminations + 0 non-renewals + 1 ceased (other) = 2 exits ÷ 9 at start = 22.2%
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.
| State | Franchised | Company-owned |
|---|---|---|
| CA | 7 | 0 |
| TX | 2 | — |
| FL | 1 | — |
| OR | 1 | — |
| MD | 0 | — |
| NY | 0 | — |
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