FDD Item 20 Explained

If Item 7 tells you what it costs to start... Item 20 tells you what the franchise system actually looks like.

This section of the Franchise Disclosure Document tracks the growth of the franchise system.

It shows things like:

Over Coffee...

We actually like Item 20. Not because it's exciting reading. Because it tells a story with facts instead of marketing.

Why Item 20 Exists

Imagine two franchise companies.

One says they're growing like crazy.

The other quietly opens locations while providing support and building successful owners.

Item 20 lets you look beyond the sales brochure.

It's one of the places where you can see how a franchise system has actually evolved.

Growth Is More Than Selling Franchises

One thing we encourage every prospective franchise owner to understand is this:

Selling a franchise isn't the same thing as building a successful franchise system.

A franchise isn't successful because someone signed an agreement.

It's successful when that owner builds a healthy business serving real customers.

Our Philosophy On Growth

There are franchise companies that measure success by how many franchise agreements they sell every year.

That's not how we think.

We'd rather grow carefully.

We'd rather know our franchise owners personally.

We'd rather answer the phone.

We'd rather continue improving the operating system than spend all of our time recruiting.

We believe that's better for the franchise owners who have already trusted us with their business.

Questions Item 20 Helps Answer

Question Why It Matters
How many franchises are open? Shows the current size of the system.
Have locations transferred? Provides additional historical context.
Have locations closed? Helps you understand changes within the system.
Has the system grown? Shows how the franchise has evolved over time.
Where are locations located? Helps identify geographic expansion.

Don't Read Item 20 By Itself

Item 20 is important.

But it's only one piece of the puzzle.

Read it together with:

No single page tells the entire story.

Transparency Matters

One reason we've built this Knowledge Catalog is because we believe understanding creates confidence.

That's true during a home inspection.

And it's true when evaluating a franchise.

If something changed... we'd rather explain it.

If someone has a question... we'd rather answer it.

That's simply how we do business.

Our Recommendation

When you're comparing franchises, don't just ask:

"How many franchises have you sold?"

Ask:

Those questions usually tell you much more about the health of a franchise system than a sales presentation ever could.

Final Thoughts

Item 20 isn't about hype.

It's about history.

It documents where a franchise system has been so prospective owners can better understand where it's going.

We think that's exactly the way it should be.