How many Exit franchises in Connecticut experienced non-renewal in 2023?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 0 | | TOTALS | 2022 | 21 | | | 2023 | 27 | | | 2024 | 30 | | State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Nonrenewals | Reacquired by Subfranchisor | Ceased Operations – Other Reasons | Outlets at End of Year | |---|---|---|---|---|---|---|---|---| | Alabama | 2022 | 32 | 3 | 0 | 0 | 0 | 0 | 35 | |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 31–42)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, one Exit franchise in Connecticut experienced non-renewal in 2023. The table provided in Item 20 of the FDD outlines outlet information for the years 2022, 2023, and 2024, detailing changes in the number of franchises across different states. This includes data on outlets at the start of the year, outlets opened, terminations, non-renewals, outlets reacquired by subfranchisors, outlets that ceased operations for other reasons, and the number of outlets at the end of the year.
For a prospective franchisee, this information is crucial for assessing the stability and performance of Exit franchises in specific regions. A non-renewal indicates that the franchisee's agreement was not extended at the end of its term, which could be due to various factors such as the franchisee's performance, changes in the market, or strategic decisions by either party. Seeing one non-renewal in Connecticut during 2023, compared to one in 2022 and none in 2024, might prompt further investigation into the reasons behind this fluctuation.
It's important to note that non-renewals are just one aspect of franchise turnover. The table also includes data on terminations and other reasons for ceased operations, which can provide a more comprehensive picture of franchise performance. A prospective Exit franchisee should consider these figures in conjunction with other information in the FDD, such as the franchisor's financial performance and franchisee satisfaction surveys, to make an informed decision. They may also want to speak with current and former franchisees in Connecticut to understand their experiences and the specific factors that may have contributed to the non-renewal in 2023.
While one non-renewal in Connecticut in 2023 doesn't necessarily indicate a systemic problem, it does highlight the importance of due diligence and careful consideration of the risks and opportunities associated with investing in an Exit franchise. Understanding the reasons behind franchise turnover can help a prospective franchisee assess their own likelihood of success and negotiate favorable terms with the franchisor.