FDD ITEM 20 · FISCAL 2016–2018
Kahala Coffee Traders Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2018), Kahala Coffee Traders reported 6 franchised outlets at year end. 1 of 7 franchised outlets open at the start of the year left the system — an annualized exit rate of 14.3%— while 0 new outlets opened. Systemwide units moved +20.0% over 2016–2018.
| Status (FTC) | 2016 | 2017 | 2018 |
|---|---|---|---|
| Outlets at start | 3 | 5 | 7 |
| Opened | 2 | 2 | 0 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 0 | 1 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 5 | 7 | 6 |
| Net change | +2 | +2 | -1 |
1 terminations + 0 non-renewals + 0 ceased (other) = 1 exits ÷ 7 at start = 14.3%
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 (0) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.
| State | Franchised | Company-owned |
|---|---|---|
| AZ | 2 | 0 |
| CA | 1 | 0 |
| NY | 1 | 0 |
| TX | 1 | 0 |
| UT | 1 | 0 |
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