FDD ITEM 20 · FISCAL 2023–2025
Stemtree Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2025), Stemtree reported 16 franchised outlets at year end. 2 of 16 franchised outlets open at the start of the year left the system — an annualized exit rate of 12.5%— while 2 new outlets opened. Systemwide units moved +30.8% over 2023–2025.
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 14 | 13 | 17 |
| Opened | 1 | 8 | 2 |
| Transfers | 0 | 0 | 1 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 2 | 4 | 1 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 1 |
| Outlets at end | 13 | 17 | 17 |
| Net change | -1 | +4 | 0 |
0 terminations + 1 non-renewals + 1 ceased (other) = 2 exits ÷ 16 at start = 12.5%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (1) 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 | 5 | — |
| CA | 2 | — |
| FL | 2 | — |
| MD | 2 | — |
| WA | 2 | — |
| MA | 1 | — |
| OH | 1 | — |
| TN | 1 | — |
| GA | 0 | — |
| IN | 0 | — |
| OK | 0 | — |
| VA | 0 | 1 |
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