What was the net change in the number of Exit franchises in the Upper Midwest during 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Upper Midwest | 2022 | 85 | 89 | +4 |
| (IA,IL,MI,MN,ND,SD,WI) | 2023 | 89 | 88 | -1 |
| 2024 | 88 | 83 | -5 | |
| Company Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets – | 2022 | 85 | 89 | +4 |
| Franchises | 2023 | 89 | 88 | -1 |
| 2024 | 88 | 83 | -5 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 31–42)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the net change in the number of Exit franchises in the Upper Midwest (IA, IL, MI, MN, ND, SD, WI) during 2024 was -5. This means that the region experienced a decrease of five franchise locations during that year. At the start of 2024, there were 88 Exit franchises in the Upper Midwest, and by the end of the year, the number had dropped to 83.
For a prospective franchisee, this decrease could signal potential challenges or market saturation in the Upper Midwest region. It may be prudent to investigate the reasons behind the net decrease, such as closures, terminations, or non-renewals of existing franchises. Understanding the factors contributing to this decline can help a potential franchisee assess the risks and opportunities associated with investing in an Exit franchise in this area.
It's important to note that while the number of franchises decreased, this data point alone doesn't provide a complete picture of the region's performance. Factors such as gross sales, profitability, and market share would also be important to consider. Additionally, the FDD indicates that there were 4 franchise agreements signed in the Upper Midwest, but the outlets were not yet opened as of the end of 2024, and there is a projection of 9 new franchised outlets in the next fiscal year. This suggests that Exit is still actively pursuing growth in the region, despite the recent decrease in franchise locations.
Prospective franchisees should engage in thorough due diligence, including speaking with current and former franchisees in the Upper Midwest, to gain a comprehensive understanding of the market dynamics and the challenges and opportunities associated with operating an Exit franchise in the region. They should also inquire about the specific reasons for the franchise closures and the franchisor's plans to address any underlying issues.