FRANCHISE·WATCH·DESK

FDD ITEM 20 · FISCAL 2021–2023

Shrunk 3D Item 20: outlets, closures & growth

In its latest FDD Item 20 (fiscal 2023), Shrunk 3D reported 22 franchised outlets at year end. 3 of 8 franchised outlets open at the start of the year left the system — an annualized exit rate of 37.5%— while 17 new outlets opened. Systemwide units moved +2100.0% over 2021–2023.

Item 20 · outlet status by yearas filed
Status (FTC)202120222023
Outlets at start118
Opened1817
Transfers001
Terminations000
Non-renewals000
Reacquired by franchisor010
Ceased — other reasons003
Outlets at end1822
Net change0+7+14
How the exit count is computedfiscal 2023

0 terminations + 0 non-renewals + 3 ceased (other) = 3 exits ÷ 8 at start = 37.5%

These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (1) 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.

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