FRANCHISE·WATCH·DESK

FDD ITEM 20 · FISCAL 2023–2025

Pearce Bespoke Item 20: outlets, closures & growth

In its latest FDD Item 20 (fiscal 2025), Pearce Bespoke reported 63 franchised outlets at year end. 9 of 49 franchised outlets open at the start of the year left the system — an annualized exit rate of 18.4%— while 23 new outlets opened. Systemwide units moved +57.5% over 2023–2025.

Item 20 · outlet status by yearas filed
Status (FTC)202320242025
Outlets at start34051
Opened371123
Transfers009
Terminations003
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons006
Outlets at end405163
Net change+37+11+12
How the exit count is computedfiscal 2025

3 terminations + 0 non-renewals + 6 ceased (other) = 9 exits ÷ 49 at start = 18.4%

These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (9) 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 202521 states/territories
StateFranchisedCompany-owned
FL11
TX9
AL4
CA4
IL4
NV4
SC4
GA3
LA30
UT3
IN2
MA2
NC2
NY2
TN2
DC1
MI1
MS1
NJ1
OR1
OK0
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