FDD ITEM 20 · FISCAL 2022–2025
HOTWORX Item 20: outlets, exits & growth
In its latest FDD Item 20 (fiscal 2025, from the 2025 FDD), HOTWORX reported 797 franchised outlets at year end. 1 of 712 franchised outlets open at the start of the year left the system (exit rate 0.1%, fiscal 2025), while 95 new outlets opened. Systemwide units moved +98.5% over 2022–2025.
| Status (FTC) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Outlets at start | 236 | 409 | 582 | 719 |
| Opened | 172 | 171 | 141 | 95 |
| Transfers | 13 | 27 | 37 | 40 |
| Terminations | 0 | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 | 9 |
| Ceased — other reasons | 0 | 0 | 5 | 1 |
| Outlets at end | 409 | 582 | 719 | 812 |
| Net change | +173 | +173 | +137 | +93 |
0 terminations + 0 non-renewals + 1 ceased (other) = 1 exits ÷ 712 at start = 0.1%
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 (40) are resales, not exits; reacquisitions by the franchisor (9) 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 |
|---|---|---|
| TX | 188 | — |
| FL | 62 | 1 |
| CA | 40 | — |
| GA | 34 | 3 |
| NC | 29 | — |
| TN | 26 | 5 |
| LA | 25 | 4 |
| CO | 23 | — |
| UT | 18 | — |
| WA | 18 | — |
| IL | 17 | 0 |
| MO | 17 | — |
| OK | 17 | — |
| AL | 16 | — |
| NE | 16 | — |
| OH | 16 | — |
| MI | 15 | — |
| NY | 15 | 1 |
| SC | 15 | — |
| AZ | 14 | — |
| IA | 13 | — |
| IN | 13 | — |
| MN | 13 | — |
| MS | 13 | 1 |
| VA | 13 | — |
| PA | 12 | — |
| AR | 11 | — |
| KY | 10 | — |
| NH | 10 | — |
| NV | 10 | — |
| KS | 9 | — |
| NM | 7 | — |
| WI | 7 | — |
| ID | 6 | — |
| MA | 6 | — |
| NJ | 6 | — |
| MD | 4 | — |
| OR | 3 | — |
| WV | 3 | — |
| ND | 2 | — |
| SD | 2 | — |
| CT | 1 | — |
| ME | 1 | — |
| MT | 1 | — |
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