What FDD Item 20 tells you about a franchise

Item 20 is a mandated table

The FTC Franchise Rule requires every FDD to report system-wide outlet counts in a standardized set of Item 20 tables: openings, closures, terminations, non-renewals, transfers, and company-owned vs franchised counts, year over year.

Reading the signal

Net growth suggests momentum — good for suppliers chasing new locations. Rising closures, terminations, or transfers can signal distress or unit-economics problems — important for investors and competitive-intel teams.

How FranchisePulse uses it

We compare each new FDD's Item 20 tables against the prior year to flag net outlet growth or decline as a signal, with the source filing attached so you can confirm the numbers yourself.