Every spring, franchisors scramble to prepare their Franchise Disclosure Document (FDD). For many, compiling outlet data for Item 20—which covers openings, closures, transfers, and renewals—becomes a last-minute fire drill.
But waiting until March or April to gather this information can create serious compliance risks, increase legal exposure, and undermine franchisee trust.
If you’re still relying on spreadsheets, scattered emails, or outdated CRMs, it’s time to rethink your process. Accurate, territory-level tracking is not a luxury—it’s a legal and operational necessity.
Item 20 of the Franchise Rule requires franchisors to disclose detailed outlet activity, including:
The number of franchise outlets opened and closed
Transfers and terminations
Non-renewals and reacquisitions
The reason for the closure
Agreements signed but not open
This data isn’t just a regulatory requirement—it’s a core part of how prospective franchisees evaluate your system’s performance.
Misreporting or omitting this information—intentionally or not—can lead to franchisee claims of misrepresentation, regulatory penalties, and serious brand damage.
Many franchisors wait until the FDD renewal deadline looms before trying to piece together a year’s worth of data. By then:
Records are incomplete or missing
Staff turnover may have caused knowledge gaps
Precise open dates are not well tracked
Closure reasons are unclear or unrecorded
Disputes arise over outlet status and open dates
This leads to rushed disclosures, increased legal costs, and heightened risk of noncompliance.
Zors is a franchise management platform built specifically for franchisors. Our platform allows you to easily track outlet activity, important dates, and territory lifecycle events in real time—so you’re always audit-ready.
Here’s how it works:
Zors associates every outlet with a territory, franchisee, and company. You can record and monitor:
Open dates
Closure dates
Transfer dates
Renewal deadlines
No more digging through inboxes or old contracts. Everything is centralized and easily reportable.
Zors uses the same closure categories required by the Franchise Rule:
Transferred
Terminated
Non-renewed
Reacquired by franchisor
Ceased operations (other reasons)
This structure simplifies your annual reporting and helps ensure your FDD reflects an accurate and compliant picture of your system’s performance.
From initial sale to renewal or closure, Zors lets you track each territory through every stage. You gain a comprehensive view of your franchise network’s health, growth, and risk areas—all in one place.
By the time spring hits, your Item 20 data should already be complete and accurate. With Zors, it is.
No last-minute data scramble
No misreported numbers
No risk of violating the Franchise Rule
Instead, you’ll have real-time, defensible reports that help you stay compliant and build credibility with prospective franchisees. You just have to use the tools at your disposal.
If you're a franchisor looking to track franchise outlet openings, closure reasons, and territory data more efficiently and accurately, Zors offers the tools you need to do it right—every time. All integrated with territory mapping.
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