FDD ITEM 20 · FISCAL 2021–2023
MCDONALD'S Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2023), MCDONALD'S reported 12,772 franchised outlets at year end. 107 of 12,764 franchised outlets open at the start of the year left the system — an annualized exit rate of 0.8%— while 128 new outlets opened. Systemwide units moved +0.2% over 2021–2023.
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 13,679 | 13,436 | 13,455 |
| Opened | 101 | 84 | 128 |
| Transfers | 1,758 | 1,169 | 672 |
| Terminations | 10 | 30 | 73 |
| Non-renewals | 300 | 18 | 33 |
| Reacquired by franchisor | 37 | 47 | 13 |
| Ceased — other reasons | 1 | 0 | 1 |
| Outlets at end | 13,436 | 13,455 | 13,457 |
| Net change | -243 | +19 | +2 |
73 terminations + 33 non-renewals + 1 ceased (other) = 107 exits ÷ 12,764 at start = 0.8%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (672) are resales, not exits; reacquisitions by the franchisor (13) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing MCDONALD'S's numbers, including talking you out of a bad deal.
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