What's Your Next?

Is Your Franchise Closing Locations ... Find Out in Item 20

September 14, 2023 Stacey Riska Episode 52
What's Your Next?
Is Your Franchise Closing Locations ... Find Out in Item 20
Show Notes


So we are back on the Franchise Disclosure Document (FDD) looking at item 20 and it’s a doozy. It's a prominent item in that there are a lot of numbers and facts and figures that are covered in this Item regarding the number of units within a franchise being disclosed. 

In this particular Item, it's not like Item 19 where there's a lot of flexibility in how the numbers and info are presented regarding the operations of their franchises. This one is more regarding the actual number of units in operation and the status of those units. We're going to outline each one of the tables included. There are five tables within this Item, and these tables are going to lay out the different numbering that you're going to see for each of these different five areas that must be covered in Item 20

The first one has to do with the system-wide summary of the net change of both franchised and company-owned outlets in the last three fiscal years. 

Item 20 is going to comprise of five tables and every franchise must follow the same lineage of how these tables are structured. In Item 19, when you're talking about money, it's a little bit more flexible. Item 20 is not flexible, and table one compares franchise units versus company-owned units. This can be really insightful …

… watch/listen to the full episode/podcast

What’s Covered

  1. What is Item 20?
  2. Why Item 20 is a super important item you review and understand
  3. The 5 tables that generally make up Item 20 of the FDD
  4. What each table graphically means
  5. What are some of the trends to look for in these tables/charts

Contact Us