Net lease glossary
FDD Item 20 (Outlets and Franchisee Information)
The FDD section showing unit counts, openings, transfers, closures, and terminations for the franchise system over the past three years.
Item 20 of an FDD presents tables of franchised and company-owned outlets by state, including openings, transfers, terminations, non-renewals, reacquisitions, and units that ceased operations for other reasons over the last three fiscal years. It also lists current and recently departed franchisees. For a net lease investor, Item 20 is a direct look at system health: rising closures or heavy transfers can signal stress that ratings and headlines may not yet show.