FDD Item 20: Outlets and Franchisee Information
By Scott Engler · Averan Advisors · Updated 3 October 2026
Item 20 of the Franchise Disclosure Document counts the locations in the system over the last three fiscal years. It shows openings, closings, transfers and terminations, and it lists current and former franchisees you can call.
What Item 20 must show
The Franchise Disclosure Document (FDD) is the document a franchisor must give a buyer at least 14 calendar days before the buyer signs or pays anything. The Federal Trade Commission's Franchise Rule sets its 23 sections, which are called Items.
| Table | What it counts |
|---|---|
| Table 1 | Total franchised and company-owned locations at the start and end of each of the last three fiscal years. |
| Table 2 | Transfers of franchised locations from one owner to another, by state. |
| Table 3 | Status of franchised locations by state: openings, terminations, non-renewals, locations the franchisor took back, and locations that stopped operating for other reasons. |
| Table 4 | Status of company-owned locations by state. |
| Table 5 | Locations expected to open in the next fiscal year. |
Item 20 also lists the name and contact information of current franchisees and of every franchisee who left the system in the last fiscal year.
Numbers to work out
- Closures and terminations in a year divided by the locations open at the start of that year.
- Transfers divided by locations, which shows how often owners sell.
- Signed but not yet open locations, which shows how many owners are waiting to open.
Who to call
Call owners from the former franchisee list as well as current owners. Ask what the location cost to open compared with Item 7, how long it took to cover its costs, and what they would budget differently.
Common questions
Where can I find how many franchise locations closed?
In Item 20, Table 3, which counts terminations, non-renewals, reacquisitions and locations that stopped operating, by state, for the last three years.
Does the FDD list former franchisees?
Yes. Item 20 lists franchisees who left the system in the last fiscal year, with their contact information.
Sources
This page is an educational summary and is not legal advice. Read the FDD itself, and have a franchise attorney review it before you sign.