FDD ITEM 20 · FISCAL 2023–2025
MERLE NORMAN COSMETICS Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2025), MERLE NORMAN COSMETICS reported 757 franchised outlets at year end. 44 of 797 franchised outlets open at the start of the year left the system — an annualized exit rate of 5.5%— while 4 new outlets opened. Systemwide units moved -8.9% over 2023–2025.
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 858 | 831 | 797 |
| Opened | 13 | 5 | 4 |
| Transfers | 27 | 32 | 33 |
| Terminations | 3 | 4 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 37 | 35 | 44 |
| Outlets at end | 831 | 797 | 757 |
| Net change | -27 | -34 | -40 |
0 terminations + 0 non-renewals + 44 ceased (other) = 44 exits ÷ 797 at start = 5.5%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (33) 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 |
|---|---|---|
| TX | 108 | 0 |
| GA | 57 | 0 |
| AL | 51 | 0 |
| TN | 49 | 0 |
| FL | 36 | 0 |
| NC | 34 | 0 |
| IL | 33 | 0 |
| LA | 33 | 0 |
| MS | 33 | 0 |
| KY | 31 | 0 |
| AR | 29 | 0 |
| OH | 26 | 0 |
| SC | 26 | 0 |
| IN | 25 | 0 |
| OK | 25 | 0 |
| CA | 16 | 0 |
| MO | 15 | 0 |
| VA | 15 | 0 |
| IA | 13 | 0 |
| MI | 13 | 0 |
| PA | 11 | 0 |
| AZ | 8 | 0 |
| KS | 8 | 0 |
| WI | 8 | 0 |
| CO | 7 | 0 |
| NY | 7 | 0 |
| MD | 4 | 0 |
| MN | 4 | 0 |
| NE | 4 | 0 |
| NJ | 4 | 0 |
| OR | 3 | 0 |
| WV | 3 | 0 |
| CT | 2 | 0 |
| ID | 2 | 0 |
| NM | 2 | 0 |
| NV | 2 | 0 |
| SD | 2 | 0 |
| UT | 2 | 0 |
| DE | 1 | 0 |
| MT | 1 | 0 |
| ND | 1 | 0 |
| RI | 1 | 0 |
| VT | 1 | 0 |
| WA | 1 | 0 |
| AK | 0 | 0 |
| HI | 0 | 0 |
| MA | 0 | 0 |
| NH | 0 | 0 |
| WY | 0 | 0 |
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