GLOSSARY

Exit rate

The exit rate is the share of a brand's franchised outlets that left the system in a year — through termination, non-renewal, or ceasing operations. Transfers to a new owner and reacquisitions by the franchisor are not counted as exits.

Every year some outlets leave a franchise system. The exit rate puts that churn in proportion to system size, so a brand losing 30 of 3,000 units reads differently from one losing 30 of 150.

Pair it with exit quality: transfers (one owner selling to another) keep units alive, while terminations and ceased operations more often reflect an owner leaving the system — the filing does not say why. Both come straight from FDD Item 20.