FRANCHISE·WATCH·DESK

FDD ITEM 20 · FISCAL 2013–2015

EmbroidMe Item 20: outlets, closures & growth

In its latest FDD Item 20 (fiscal 2015), EmbroidMe reported 270 franchised outlets at year end. 18 of 265 franchised outlets open at the start of the year left the system — an annualized exit rate of 6.8%— while 23 new outlets opened. Systemwide units moved -3.2% over 2013–2015.

Item 20 · outlet status by yearas filed
Status (FTC)201320142015
Outlets at start295279265
Opened252023
Transfers101116
Terminations133
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons403115
Outlets at end279265270
Net change-16-14+5
How the exit count is computedfiscal 2015

3 terminations + 0 non-renewals + 15 ceased (other) = 18 exits ÷ 265 at start = 6.8%

These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (16) 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.

Franchised outlets by state · fiscal 201543 states/territories
StateFranchisedCompany-owned
TX23
FL17
CA14
OH10
IL9
NY8
MD7
IN6
NJ6
VA6
WI6
MA5
NC5
CO4
LA4
MI4
MN4
KS3
NH3
SC3
TN3
AL2
AZ2
HI2
KY2
OK2
WV2
GA1
IA1
ID1
MO1
ND1
NM1
NV1
PA1
SD1
UT1
WA1
AR0
CT0
ME0
MS0
NE0
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