FRANCHISE·WATCH·DESK

FDD ITEM 20 · FISCAL 2018–2020

Rytech Item 20: outlets, exits & growth

In its latest FDD Item 20 (fiscal 2020, from the 2021 FDD · 4+ years old), Rytech reported 61 franchised outlets at year end. 1 of 51 franchised outlets open at the start of the year left the system (exit rate 2.0%, fiscal 2020), while 11 new outlets opened. Systemwide units moved +28.8% over 2018–2020.

Item 20 · outlet status by yearas filed
Status (FTC)201820192020
Outlets at start475257
Opened7711
Transfers232
Terminations110
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons211
Outlets at end525767
Net change+5+5+10
How the exit count is computedfiscal 2020

0 terminations + 0 non-renewals + 1 ceased (other) = 1 exits ÷ 51 at start = 2.0%

These are the three FTC Item 20 statuses in which a franchised outlet left the system — including voluntary non-renewals and outlets that ceased for other reasons, which can include sales or absorption into another franchise. Transfers (2) are resales, not exits; reacquisitions by the franchisor (0) are tracked separately. There is no official “failure rate”, and not every exit is a closure or a failure; Item 20 does not say why any outlet left. On a small starting base, a single exit moves this rate sharply.

Franchised outlets by state · fiscal 202021 states/territories
StateFranchisedCompany-owned
FL145
CA9—
TX7—
GA51
SC5—
TN4—
NY3—
IL2—
LA2—
MD2—
PA2—
AL1—
CO1—
MA1—
MS1—
NC1—
NJ1—
NM1—
CT0—
IN0—
KS0—

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