FRANCHISE·WATCH·DESK

FDD ITEM 20 · FISCAL 2016–2018

Kahala Coffee Traders Item 20: outlets, closures & growth

In its latest FDD Item 20 (fiscal 2018), Kahala Coffee Traders reported 6 franchised outlets at year end. 1 of 7 franchised outlets open at the start of the year left the system — an annualized exit rate of 14.3%— while 0 new outlets opened. Systemwide units moved +20.0% over 2016–2018.

Item 20 · outlet status by yearas filed
Status (FTC)201620172018
Outlets at start357
Opened220
Transfers000
Terminations001
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons000
Outlets at end576
Net change+2+2-1
How the exit count is computedfiscal 2018

1 terminations + 0 non-renewals + 0 ceased (other) = 1 exits ÷ 7 at start = 14.3%

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 20185 states/territories
StateFranchisedCompany-owned
AZ20
CA10
NY10
TX10
UT10
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