FDD ITEM 20 · FISCAL 2017–2019
Zerorez Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2019), Zerorez reported 56 franchised outlets at year end. 1 of 50 franchised outlets open at the start of the year left the system — an annualized exit rate of 2.0%— while 8 new outlets opened. Systemwide units moved +20.8% over 2017–2019.
| Status (FTC) | 2017 | 2018 | 2019 |
|---|---|---|---|
| Outlets at start | 45 | 48 | 51 |
| Opened | 3 | 3 | 8 |
| Transfers | 1 | 2 | 0 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 1 |
| Ceased — other reasons | 0 | 1 | 1 |
| Outlets at end | 48 | 51 | 58 |
| Net change | +3 | +3 | +7 |
0 terminations + 0 non-renewals + 1 ceased (other) = 1 exits ÷ 50 at start = 2.0%
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 (1) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.
| State | Franchised | Company-owned |
|---|---|---|
| CA | 5 | — |
| FL | 5 | — |
| UT | 4 | — |
| NC | 3 | — |
| SC | 3 | — |
| TX | 3 | — |
| WA | 3 | — |
| AZ | 2 | — |
| CO | 2 | — |
| GA | 2 | — |
| ID | 2 | — |
| MO | 2 | — |
| OR | 2 | — |
| TN | 2 | — |
| VA | 2 | — |
| AL | 1 | — |
| IA | 1 | — |
| IN | 1 | — |
| KY | 1 | — |
| MI | 1 | — |
| MN | 1 | — |
| ND | 1 | — |
| NE | 1 | — |
| NV | 1 | — |
| NY | 1 | 1 |
| OH | 1 | — |
| OK | 1 | 1 |
| PA | 1 | — |
| WI | 1 | — |
| MA | 0 | — |
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