FDD ITEM 20 · FISCAL 2022–2024
PROFORMA Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2024), PROFORMA reported 483 franchised outlets at year end. 24 of 496 franchised outlets open at the start of the year left the system — an annualized exit rate of 4.8%— while 10 new outlets opened. Systemwide units moved -5.8% over 2022–2024.
| Status (FTC) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Outlets at start | 536 | 513 | 496 |
| Opened | 0 | 5 | 10 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 6 | 5 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 23 | 15 | 19 |
| Outlets at end | 513 | 496 | 483 |
| Net change | -23 | -17 | -13 |
5 terminations + 0 non-renewals + 19 ceased (other) = 24 exits ÷ 496 at start = 4.8%
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.
The PROFORMA validation checklist
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