FRANCHISE·WATCH·DESK

FDD ITEM 20 · FISCAL 2017–2019

Zerorez Item 20: outlets, closures & growth

In its latest FDD Item 20 (fiscal 2019), Zerorez reported 56 franchised outlets at year end. 1 of 50 franchised outlets open at the start of the year left the system — an annualized exit rate of 2.0%— while 8 new outlets opened. Systemwide units moved +20.8% over 2017–2019.

Item 20 · outlet status by yearas filed
Status (FTC)201720182019
Outlets at start454851
Opened338
Transfers120
Terminations000
Non-renewals000
Reacquired by franchisor001
Ceased — other reasons011
Outlets at end485158
Net change+3+3+7
How the exit count is computedfiscal 2019

0 terminations + 0 non-renewals + 1 ceased (other) = 1 exits ÷ 50 at start = 2.0%

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 (1) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.

Franchised outlets by state · fiscal 201930 states/territories
StateFranchisedCompany-owned
CA5
FL5
UT4
NC3
SC3
TX3
WA3
AZ2
CO2
GA2
ID2
MO2
OR2
TN2
VA2
AL1
IA1
IN1
KY1
MI1
MN1
ND1
NE1
NV1
NY11
OH1
OK11
PA1
WI1
MA0
Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Zerorez's numbers, including talking you out of a bad deal.

Talk to an independent CPA before you buy →