FDD ITEM 20 · FISCAL 2023–2025
HOBBY USA Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2025), HOBBY USA reported 85 franchised outlets at year end. 9 of 94 franchised outlets open at the start of the year left the system — an annualized exit rate of 9.6%— while 1 new outlets opened. Systemwide units moved -14.0% over 2023–2025.
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 106 | 100 | 94 |
| Opened | 0 | 2 | 1 |
| Transfers | 8 | 5 | 0 |
| Terminations | 0 | 0 | 2 |
| Non-renewals | 1 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 1 |
| Ceased — other reasons | 5 | 8 | 7 |
| Outlets at end | 100 | 94 | 86 |
| Net change | -6 | -6 | -8 |
2 terminations + 0 non-renewals + 7 ceased (other) = 9 exits ÷ 94 at start = 9.6%
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 (1) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.
| State | Franchised | Company-owned |
|---|---|---|
| TX | 10 | — |
| CA | 6 | — |
| OH | 6 | — |
| WA | 6 | — |
| CO | 5 | — |
| GA | 5 | — |
| IL | 5 | — |
| NE | 4 | — |
| VA | 4 | — |
| IN | 3 | — |
| KY | 3 | — |
| OK | 3 | — |
| FL | 2 | — |
| MO | 2 | — |
| NC | 2 | — |
| TN | 2 | — |
| AL | 1 | — |
| AR | 1 | — |
| CT | 1 | — |
| DE | 1 | — |
| IA | 1 | — |
| ID | 1 | — |
| KS | 1 | — |
| MD | 1 | — |
| MI | 1 | — |
| MN | 1 | — |
| NH | 1 | — |
| NJ | 1 | — |
| NY | 1 | — |
| PA | 1 | — |
| SD | 1 | — |
| UT | 1 | — |
| WI | 1 | — |
| OR | 0 | — |
| SC | 0 | — |
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