In Maryland, how many Exit franchises were reacquired by the subfranchisor in 2024?
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 | | | 20
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 31–42)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, there were 6 franchises reacquired by the subfranchisor in Maryland during 2024. The table provided in Item 20 of the FDD outlines the number of outlets that were reacquired by subfranchisors, which can be an important factor for prospective franchisees to consider. Reacquisitions can occur for various reasons, such as the franchisee's failure to meet performance standards or a mutual agreement to terminate the franchise agreement.
For a potential Exit franchisee, this information highlights the importance of understanding the factors that can lead to a franchise being reacquired. It may be prudent to inquire about the reasons for past reacquisitions and the criteria Exit uses to determine whether to reacquire a franchise. Understanding these factors can help a franchisee avoid similar situations and maintain a successful business.
Furthermore, the number of reacquisitions can also indicate the level of support and oversight provided by the subfranchisor. A high number of reacquisitions may suggest issues with franchisee training, support, or the overall business model. Therefore, it is essential for prospective franchisees to carefully evaluate the data presented in Item 20 and conduct thorough due diligence to assess the stability and potential risks associated with investing in an Exit franchise.