FDD ITEM 20 · FISCAL 2015–2017
Salon Professional Education Company Item 20: outlets, exits & growth
In its latest FDD Item 20 (fiscal 2017, from the 2018 FDD · 7+ years old), Salon Professional Education Company reported 40 franchised outlets at year end. 2 of 39 franchised outlets open at the start of the year left the system (exit rate 5.1%, fiscal 2017), while 3 new outlets opened. Systemwide units moved +14.3% over 2015–2017.
| Status (FTC) | 2015 | 2016 | 2017 |
|---|---|---|---|
| Outlets at start | 26 | 35 | 39 |
| Opened | 10 | 9 | 3 |
| Transfers | 0 | 1 | 0 |
| Terminations | 0 | 5 | 1 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 1 | 0 | 1 |
| Outlets at end | 35 | 39 | 40 |
| Net change | +9 | +4 | +1 |
1 terminations + 0 non-renewals + 1 ceased (other) = 2 exits ÷ 39 at start = 5.1%
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 (0) 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.
| State | Franchised | Company-owned |
|---|---|---|
| CA | 4 | — |
| FL | 4 | — |
| TX | 4 | — |
| MI | 3 | — |
| OH | 3 | — |
| IA | 2 | — |
| IL | 2 | — |
| IN | 2 | — |
| MN | 2 | — |
| PA | 2 | — |
| CO | 1 | — |
| DC | 1 | — |
| ID | 1 | — |
| NC | 1 | — |
| ND | 1 | — |
| NJ | 1 | — |
| OR | 1 | — |
| TN | 1 | — |
| VA | 1 | — |
| WI | 1 | — |
| MD | 0 | — |
| NM | 0 | — |
| NY | 0 | — |
| SD | 0 | — |
| WA | 0 | — |
The Salon Professional Education Company validation checklist
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