Restaurant franchise closures in the filed record: across 14 restaurant FDDs, 510 franchised outlets ceased operations in fiscal 2025 while 1,247 opened, according to each brand’s Item 20, Table 3.
Key takeaways
- In fiscal 2025, the 14 restaurant FDDs in this dataset recorded 109 terminations, 83 non-renewals, 201 reacquisitions and 510 ceased operations against 28,483 franchised outlets at the start of the year (Item 20, Table 3, filings on Minnesota CARDS).
- Of the 1,239 franchised outlets reacquired by franchisors in fiscal 2024, 1,061 were Burger King restaurants, which reappear in Table 4 as company-owned, so a buyback is not a closure (Burger King FDD, Item 20, Tables 3 and 4).
- Pizza Hut’s FDD, as amended October 8, 2026, says 275 franchised restaurants ceased operations from December 30, 2025 through August 18, 2026, more than its 259 for all of fiscal 2025 (Pizza Hut FDD, Item 20, Table 3 footnote).
- Wendy’s reported 286 U.S. franchised closures in the six months to June 28, 2026, after its FDD recorded 71 franchised exits other than buybacks for fiscal 2025 (Wendy’s Form 10-Q).
- Under 16 CFR 436.5(t), a termination is an early end “without providing any consideration to the franchisee”; 10 of 13 terminated Tropical Smoothie Cafe outlets in Arizona had reopened under other franchisees by the FDD’s issuance (Tropical Smoothie Cafe FDD, Item 20).
Which restaurant franchises shrank between 2023 and 2025, by their own FDDs?
Six of the 14 restaurant franchise systems ended fiscal 2025 with fewer franchised outlets than they had at the start of fiscal 2023: Blaze Pizza (296 to 230), Burger King (6,992 to 5,518), Pizza Hut (5,302 to 4,956), Sharetea (147 to 146), Tapioca Express (24 to 15) and Wendy’s (5,591 to 5,546). The other eight grew. Every figure comes from Item 20, Table 3 of the brand’s 2025 or 2026 FDD.
Burger King fell by 1,474 franchised outlets and Pizza Hut by 346 from the start of FY2023 to the end of FY2025; Burger King’s change includes 1,162 buybacks. Source: Item 20, Table 3, FDDs on Minnesota CARDS, accessed November 3, 2026.
The brands are listed alphabetically, not by size of change. Burger King’s minus 1,474 is mostly a transfer of ownership: 1,162 of its 1,681 franchised exits over three years were reacquisitions, which its FDD issued March 26, 2026 moves into the company-owned table. Pizza Hut’s minus 346 is different, because 575 of its 645 exits were outlets that ceased operations.
| Brand (alphabetical) | Franchised outlets, start of FY2023 | Franchised outlets, end of FY2025 | Net change | All exits, 3 years | Of which ceased operations | Source |
|---|---|---|---|---|---|---|
| Blaze Pizza | 296 | 230 | -66 | 93 | 59 | Blaze Pizza FDD, Item 20, Table 3 |
| Burger King | 6,992 | 5,518 | -1,474 | 1,681 | 375 | Burger King FDD, Item 20, Table 3 |
| Chick-fil-A (franchised restaurants) | 2,331 | 2,863 | +532 | 307 | 22 | Chick-fil-A FDD, Item 20, Table 3 |
| Cold Stone Creamery (US) | 908 | 1,052 | +144 | 23 | 12 | Cold Stone Creamery FDD, Item 20, Table 3 |
| Dave’s Hot Chicken | 88 | 348 | +260 | 4 | 4 | Dave’s Hot Chicken FDD, Item 20, Table 3 |
| Kung Fu Tea | 338 | 344 | +6 | 108 | 48 | Kung Fu Tea FDD, Item 20, Table 3 |
| Papa John’s | 2,658 | 2,832 | +174 | 151 | 109 | Papa John’s FDD, Item 20, Table 3 |
| Paris Baguette | 98 | 261 | +163 | 4 | 2 | Paris Baguette FDD, Item 20, Table 3 |
| Pizza Hut (Traditional) | 5,302 | 4,956 | -346 | 645 | 575 | Pizza Hut FDD, Item 20, Table 3 |
| Popeyes Louisiana Kitchen | 2,905 | 3,134 | +229 | 176 | 90 | Popeyes FDD, Item 20, Table 3 |
| Sharetea | 147 | 146 | -1 | 37 | 0 | Sharetea FDD, Item 20, Table 3 |
| Tapioca Express | 24 | 15 | -9 | 10 | 5 | Tapioca Express FDD, Item 20, Table 3 |
| Tropical Smoothie Cafe | 1,197 | 1,650 | +453 | 59 | 29 | Tropical Smoothie Cafe FDD, Item 20, Table 3 |
| Wendy’s | 5,591 | 5,546 | -45 | 341 | 283 | Wendy’s FDD, Item 20, Table 3 |
Our sector-wide benchmark, built from 220 systems for one year, sits in the franchise closure rates index by sector. None of the 14 brands here is in that sample, so the two datasets add to each other rather than overlap.
Terminated, not renewed, bought back or dark: what do the Item 20 exit columns mean?
Item 20, Table 3 has four exit columns, and only one of them, “ceased operations, other reasons,” counts outlets that simply stopped operating as brand outlets; the other three record contract events. The FTC Franchise Rule at 16 CFR 436.5(t)(2) defines a termination as the franchisor ending the agreement early without paying the franchisee, and a reacquisition as the franchisor buying the outlet. A buyback keeps the restaurant open under company ownership.
| Item 20 column | What the FTC Franchise Rule counts | What usually happens to the restaurant | Example in this dataset |
|---|---|---|---|
| Terminated (Table 3, column 5) | Column 5: ended early by franchisor, no payment; the rule’s words are “without providing any consideration to the franchisee” | May reopen under another franchisee | Tropical Smoothie Cafe: 21 terminations in FY2025, 13 of them in Arizona |
| Non-renewal (Table 3, column 6) | Column 6: term ends and is not renewed | Leaves the system at term end | Burger King: 55, 49 and 33 non-renewals in FY2023 to FY2025 |
| Reacquired by franchisor (Table 3, column 7) | Column 7: franchisor pays; moves to Table 4, where it is counted again as “reacquired from franchisee” | Usually keeps operating as company-owned | Burger King: 1,061 in FY2024 |
| Ceased operations, other reasons (Table 3, column 8) | Column 8: closed, de-branded or relocated; any outlet “not operating as one of the franchisor’s outlets” for another reason | No longer a brand outlet | Pizza Hut: 259 in FY2025 |
| Transfer (Table 2) | Table 2: new franchisee, not an exit; a change of controlling interest during the term | Keeps operating | Not an exit column, so not in the totals here |
| Closed (Table 4, column 6) | Company-owned outlets that closed or stopped using the franchisor’s trademark | No longer a brand outlet | Wendy’s: 32 company-owned closures in FY2023 |
The rule also says each change in ownership is reported once, and when several events happen, the franchisor reports “the event that occurred last in time” (16 CFR 436.5(t)(2)). A restaurant that a franchisor terminated and then sold to a new franchisee in the same year can therefore show up as an opening and an exit, which is what Wendy’s footnote describes for 8 locations in 2024 (Wendy’s FDD, Item 20, Table 3).
The franchise disclosure document guide walks through all 23 Items; for closures, Item 20’s Tables 3 and 4 and the exhibit listing franchisees who left in the last fiscal year are the parts to read together.
A buyback is not a closure: the 2024 reacquisition spike
Pooled across the 14 FDDs, reacquisitions jumped from 187 in fiscal 2023 to 1,239 in fiscal 2024 and fell back to 201 in fiscal 2025, while ceased operations held between 510 and 560 a year. Burger King’s 1,061 reacquisitions in 2024 explain the spike; its company-owned count went from 138 to 1,177 in the same year (Item 20, Table 4).
Reacquisitions rose to 1,239 in FY2024, 1,061 of them Burger King, while ceased operations stayed between 510 and 560 a year. Source: Item 20, Table 3, 14 FDDs, accessed November 3, 2026.
| Item 20 column (14 FDDs pooled) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Franchised outlets at start of year | 28,875 | 29,245 | 28,483 |
| Opened | 1,229 | 1,118 | 1,247 |
| Terminations | 45 | 21 | 109 |
| Non-renewals | 69 | 72 | 83 |
| Reacquired by franchisor | 187 | 1,239 | 201 |
| Ceased operations, other reasons | 560 | 543 | 510 |
| Franchised outlets at end of year | 29,245 | 28,488 | 28,895 |
| Company-owned outlets closed (Table 4) | 56 | 62 | 48 |
Read in that light, the 2024 drop in pooled franchised outlets (29,245 to 28,488) is mostly a change of owner. The Burger King terms that come with a refranchised restaurant, including remodel deadlines, are covered on the Burger King franchise cost page.
Popeyes shows the same pattern at a smaller scale: 58 franchised outlets reacquired in fiscal 2024, and company-owned outlets rising from 41 to 98 that year (Popeyes FDD issued March 20, 2026, Item 20, Tables 3 and 4). Chick-fil-A reports 84, 102 and 99 reacquisitions a year from operators, because, per its Table 4 note, any restaurant passed from an operator back to the company counts there (Chick-fil-A FDD, Item 20, Table 4).
Are company-owned restaurants closing too?
Company-owned closures are small in this dataset: Table 4 shows 56, 62 and 48 company-owned outlets closed across the 14 FDDs in fiscal 2023, 2024 and 2025. Wendy’s accounts for 55 company-owned closures over the three years, Chick-fil-A for 70. Several franchisors sold more company outlets to franchisees than they closed, which moves units into Table 3 as openings.
| Brand (alphabetical) | Company-owned, start of FY2023 | Company-owned, end of FY2025 | Reacquired from franchisees, 3 years | Closed, 3 years | Sold to franchisees, 3 years | Source |
|---|---|---|---|---|---|---|
| Blaze Pizza | 7 | 0 | 6 | 2 | 11 | Blaze Pizza FDD, Item 20, Table 4 |
| Burger King | 50 | 1,132 | 1,162 | 26 | 59 | Burger King FDD, Item 20, Table 4 |
| Chick-fil-A (franchised restaurants) | 80 | 68 | 308 | 70 | 255 | Chick-fil-A FDD, Item 20, Table 4 |
| Cold Stone Creamery (US) | 4 | 2 | 5 | 0 | 1 | Cold Stone Creamery FDD, Item 20, Table 4 |
| Dave’s Hot Chicken | 4 | 10 | 6 | 2 | 0 | Dave’s Hot Chicken FDD, Item 20, Table 4 |
| Kung Fu Tea | 2 | 2 | 0 | 0 | 0 | Kung Fu Tea FDD, Item 20, Table 4 |
| Papa John’s | 522 | 462 | 11 | 3 | 104 | Papa John’s FDD, Item 20, Table 4 |
| Paris Baguette | 20 | 8 | 0 | 2 | 11 | Paris Baguette FDD, Item 20, Table 4 |
| Pizza Hut (Traditional) | 21 | 75 | 70 | 2 | 14 | Pizza Hut FDD, Item 20, Table 4 |
| Popeyes Louisiana Kitchen | 41 | 95 | 58 | 4 | 0 | Popeyes FDD, Item 20, Table 4 |
| Sharetea | 0 | 0 | 0 | 0 | 0 | Sharetea FDD, Item 20, Table 4 |
| Tapioca Express | 2 | 2 | 0 | 0 | 0 | Tapioca Express FDD, Item 20, Table 4 |
| Tropical Smoothie Cafe | 1 | 1 | 0 | 0 | 0 | Tropical Smoothie Cafe FDD, Item 20, Table 4 |
| Wendy’s | 403 | 423 | 35 | 55 | 8 | Wendy’s FDD, Item 20, Table 4 |
Papa John’s is the clearest refranchising case: 85 company-owned outlets were sold to franchisees in fiscal 2025, taking the company count from 539 to 462 (Papa John’s FDD issued March 30, 2026, Item 20, Table 4). The Papa John’s franchise cost breakdown shows what a buyer of one of those units pays under the same FDD.
What happened after the fiscal year closed: 2026 closure news against the filings
The 2026 closure headlines describe events after the FDD year. Most of the 14 FDDs count outlets to late December 2025 and were issued between March and May 2026, so a closure in June 2026 cannot appear in Table 3 until the 2027 FDD, unless the franchisor files an amendment. Pizza Hut did exactly that on October 8, 2026.
Among the 14 FDDs, the Pizza Hut footnote is the one post-year closure count we found. Footnote (2*) of the same table says the ceased-operations column “includes closures due to low volume, lease expiration, relocated locations, etc.” The Pizza Hut franchise cost page covers the rest of that FDD.
| Brand | What the FDD records (latest fiscal year) | What came after the FDD year | Source for the later figure |
|---|---|---|---|
| Pizza Hut (Traditional) | 259 franchised outlets ceased operations in FY2025, ended December 29, 2025 | 275 franchised restaurants ceased operations from December 30, 2025 through August 18, 2026 | Pizza Hut FDD, Item 20 footnote |
| Wendy’s | FY2025: 53 ceased operations, 15 non-renewals, 3 terminations, 35 reacquired | 286 U.S. franchised restaurants closed in the six months to June 28, 2026; Project Fresh closures expected to total 5% to 6% of U.S. restaurants | 10-Q, Aug 7, 2026; 10-K, Feb 23, 2026 |
| Papa John’s | FY2025: 82 franchised ceased operations; 1 company-owned closure | 101 North American restaurants closed in the six months to June 28, 2026, 8 of them company-owned | 10-Q, Aug 6, 2026 |
| Denny’s | No Denny’s FDD opened | Denny’s confirmed 5 closures, 4 in Minnesota and 1 in Wisconsin | NRN, Sep 9, 2026 |
| Dairy Queen | No Dairy Queen FDD opened; no 2026 Clean FDD listed for American Dairy Queen Corporation | Reported: 42 Texas closures between February and March after the parent revoked an operator’s franchise rights over unfinished remodels; 3 Alaska closures in late June | Fox Business, Jul 10, 2026; CARDS capture, Jul 15, 2026 |
Wendy’s: the 10-K count matches Table 3
Wendy’s two filings line up with its FDD. The Form 10-K for fiscal 2025 counts 71 U.S. franchised closures, the same as Table 3’s 53 ceased operations plus 15 non-renewals plus 3 terminations, and says Project Fresh closures are expected “to total 5% to 6% of our total restaurants in the United States.” The Wendy’s franchise cost page carries that FDD’s fee and build figures.
Denny’s: no quarterly SEC count after January 2026
Denny’s Corporation filed Form 15 with the SEC on January 26, 2026 (EDGAR filing index), which ended its periodic reports. Its statement on the five Minnesota and Wisconsin closures, quoted by Nation’s Restaurant News on September 9, 2026, was that it is “working with urgency alongside our franchise network to explore every viable path to reopen as many of these restaurants” as it can.
Dairy Queen: no 2026 Clean FDD in the CARDS capture
For Dairy Queen, a Wayback Machine capture of the Minnesota CARDS search dated July 15, 2026 lists 2026 filings by American Dairy Queen Corporation for the DQ Grill and Chill and DQ Treat franchises (received March 30 and April 2, 2026) as Marked FDDs, applications and renewal orders, with no document typed “Clean FDD.”
The latest Clean FDD rows were received April 30 and May 6, 2025. Fox Business reported on July 10, 2026 that Dairy Queen “did not immediately respond” to a request for comment.
What the Item 20 record leaves out
Item 20 is a count, not an explanation. The 14 FDDs give three years of state counts, but few reasons (Pizza Hut’s column note and a Tapioca Express fire footnote are exceptions), no dates within the year and no split between a dark building and a move. The FTC requires a new FDD within 120 days of the fiscal year end and quarterly revisions only for material changes (16 CFR 436.7(a) and (b)).
- Timing: fiscal years end between May 31, 2025 (Tapioca Express) and January 4, 2026 (Dave’s Hot Chicken), so “2025” does not mean the same 12 months for every brand.
- Reopenings: Tropical Smoothie Cafe’s footnotes report reopenings by other franchisees after terminations, and Wendy’s reports 8 locations counted as both ceased and opened in 2024.
- Arithmetic: 4 of the 42 brand-years do not add up as printed (Chick-fil-A FY2025 franchised; Cold Stone Creamery FY2023 franchised and company-owned; Sharetea FY2023 franchised; Wendy’s FY2023 company-owned, which includes 3 Frosty Carts). The dataset copies them unchanged and flags them.
- Scope: totals are the tables as filed, mostly U.S. outlets; Cold Stone Creamery’s row is its “Total – US” line, and Chick-fil-A’s Licensed Units table is left out.
- Brands not covered: no Dairy Queen, Denny’s, Golden Corral, Noodles & Company or Jack in the Box FDD was opened for this article, so their closure counts here come only from the company or news statements quoted.
Academic and Census evidence on how often franchised businesses fail, which Item 20 cannot answer, is summarized in the franchise failure rate research review.
The full dataset: 42 brand-years, alphabetical
The table below is the complete Item 20 dataset: 14 brands, fiscal 2023 to 2025, franchised exits by column and the company-owned count. An asterisk marks a printed end count that does not equal start plus opened minus exits (franchised) or plus reacquired minus closed and sold (company-owned). Each FDD link opens the Minnesota CARDS copy; PDF page numbers point to Tables 3 and 4.
| Brand | FY | Start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | End | Company start | Company closed | Company end | FDD (PDF pages) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Blaze Pizza | 2023 | 296 | 8 | 0 | 3 | 6 | 12 | 283 | 7 | 0 | 13 | April 30, 2026 (63, 64) |
| Blaze Pizza | 2024 | 283 | 6 | 0 | 7 | 0 | 27 | 255 | 13 | 2 | 11 | April 30, 2026 (63, 64) |
| Blaze Pizza | 2025 | 255 | 13 | 0 | 18 | 0 | 20 | 230 | 11 | 0 | 0 | April 30, 2026 (63, 64) |
| Burger King | 2023 | 6,992 | 61 | 0 | 55 | 88 | 270 | 6,640 | 50 | 0 | 138 | March 26, 2026 (129, 132) |
| Burger King | 2024 | 6,640 | 63 | 0 | 49 | 1,061 | 69 | 5,524 | 138 | 12 | 1,177 | March 26, 2026 (129, 132) |
| Burger King | 2025 | 5,524 | 83 | 7 | 33 | 13 | 36 | 5,518 | 1,177 | 14 | 1,132 | March 26, 2026 (129, 132) |
| Chick-fil-A (franchised restaurants) | 2023 | 2,331 | 255 | 0 | 0 | 84 | 8 | 2,494 | 80 | 21 | 58 | March 31, 2026 (98, 106) |
| Chick-fil-A (franchised restaurants) | 2024 | 2,494 | 243 | 0 | 0 | 102 | 6 | 2,629 | 58 | 25 | 55 | March 31, 2026 (98, 106) |
| Chick-fil-A (franchised restaurants) | 2025 | 2,624 | 278 | 0 | 0 | 99 | 8 | 2,863* | 60 | 24 | 68 | March 31, 2026 (98, 106) |
| Cold Stone Creamery (US) | 2023 | 908 | 49 | 0 | 5 | 0 | 3 | 952* | 4 | 0 | 1* | March 27, 2026 (96, 98) |
| Cold Stone Creamery (US) | 2024 | 952 | 52 | 0 | 3 | 1 | 8 | 992 | 1 | 0 | 2 | March 27, 2026 (96, 98) |
| Cold Stone Creamery (US) | 2025 | 992 | 63 | 0 | 2 | 0 | 1 | 1,052 | 2 | 0 | 2 | March 27, 2026 (96, 98) |
| Dave’s Hot Chicken | 2023 | 88 | 70 | 0 | 0 | 0 | 1 | 157 | 4 | 0 | 6 | May 4, 2026 (85, 86) |
| Dave’s Hot Chicken | 2024 | 157 | 77 | 0 | 0 | 0 | 1 | 233 | 6 | 1 | 5 | May 4, 2026 (85, 86) |
| Dave’s Hot Chicken | 2025 | 233 | 117 | 0 | 0 | 0 | 2 | 348 | 5 | 1 | 10 | May 4, 2026 (85, 86) |
| Brand | FY | Start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | End | Company start | Company closed | Company end | FDD (PDF pages) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Kung Fu Tea | 2023 | 338 | 60 | 2 | 0 | 0 | 18 | 378 | 2 | 0 | 2 | April 20, 2026 (59, 59) |
| Kung Fu Tea | 2024 | 378 | 37 | 0 | 0 | 0 | 28 | 387 | 2 | 0 | 2 | April 20, 2026 (59, 59) |
| Kung Fu Tea | 2025 | 387 | 17 | 58 | 0 | 0 | 2 | 344 | 2 | 0 | 2 | April 20, 2026 (59, 59) |
| Papa John’s | 2023 | 2,658 | 73 | 32 | 0 | 9 | 1 | 2,689 | 522 | 2 | 531 | March 30, 2026 (85, 88) |
| Papa John’s | 2024 | 2,689 | 90 | 0 | 0 | 1 | 26 | 2,752 | 531 | 0 | 539 | March 30, 2026 (85, 88) |
| Papa John’s | 2025 | 2,752 | 162 | 0 | 0 | 0 | 82 | 2,832 | 539 | 1 | 462 | March 30, 2026 (85, 88) |
| Paris Baguette | 2023 | 98 | 39 | 0 | 0 | 0 | 0 | 137 | 20 | 1 | 18 | March 30, 2026 (71, 72) |
| Paris Baguette | 2024 | 137 | 51 | 0 | 0 | 0 | 2 | 186 | 18 | 0 | 11 | March 30, 2026 (71, 72) |
| Paris Baguette | 2025 | 186 | 77 | 2 | 0 | 0 | 0 | 261 | 11 | 1 | 8 | March 30, 2026 (71, 72) |
| Pizza Hut (Traditional) | 2023 | 5,302 | 155 | 0 | 0 | 0 | 157 | 5,300 | 21 | 0 | 7 | March 25, 2026 (59, 60) |
| Pizza Hut (Traditional) | 2024 | 5,300 | 89 | 0 | 0 | 16 | 159 | 5,214 | 7 | 0 | 23 | March 25, 2026 (59, 60) |
| Pizza Hut (Traditional) | 2025 | 5,214 | 55 | 0 | 0 | 54 | 259 | 4,956 | 23 | 2 | 75 | March 25, 2026 (59, 60) |
| Popeyes Louisiana Kitchen | 2023 | 2,905 | 165 | 0 | 4 | 0 | 31 | 3,035 | 41 | 0 | 41 | March 20, 2026 (112, 113) |
| Popeyes Louisiana Kitchen | 2024 | 3,035 | 136 | 0 | 8 | 58 | 26 | 3,079 | 41 | 1 | 98 | March 20, 2026 (112, 113) |
| Popeyes Louisiana Kitchen | 2025 | 3,079 | 104 | 14 | 2 | 0 | 33 | 3,134 | 98 | 3 | 95 | March 20, 2026 (112, 113) |
| Brand | FY | Start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | End | Company start | Company closed | Company end | FDD (PDF pages) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sharetea | 2023 | 147 | 19 | 6 | 0 | 0 | 0 | 159* | 0 | 0 | 0 | March 5, 2026 (66, 67) |
| Sharetea | 2024 | 159 | 10 | 10 | 5 | 0 | 0 | 154 | 0 | 0 | 0 | March 5, 2026 (66, 67) |
| Sharetea | 2025 | 154 | 8 | 4 | 12 | 0 | 0 | 146 | 0 | 0 | 0 | March 5, 2026 (66, 67) |
| Tapioca Express | 2023 | 24 | 1 | 1 | 1 | 0 | 0 | 23 | 2 | 0 | 2 | September 18, 2025 (56, 56) |
| Tapioca Express | 2024 | 23 | 0 | 3 | 0 | 0 | 3 | 17 | 2 | 0 | 2 | September 18, 2025 (56, 56) |
| Tapioca Express | 2025 | 17 | 0 | 0 | 0 | 0 | 2 | 15 | 2 | 0 | 2 | September 18, 2025 (56, 56) |
| Tropical Smoothie Cafe | 2023 | 1,197 | 180 | 2 | 1 | 0 | 3 | 1,371 | 1 | 0 | 1 | April 17, 2026 (75, 76) |
| Tropical Smoothie Cafe | 2024 | 1,371 | 162 | 5 | 0 | 0 | 14 | 1,514 | 1 | 0 | 1 | April 17, 2026 (75, 76) |
| Tropical Smoothie Cafe | 2025 | 1,514 | 170 | 21 | 1 | 0 | 12 | 1,650 | 1 | 0 | 1 | April 17, 2026 (75, 76) |
| Wendy’s | 2023 | 5,591 | 94 | 2 | 0 | 0 | 56 | 5,627 | 403 | 32 | 403* | March 27, 2026 (68, 69) |
| Wendy’s | 2024 | 5,627 | 102 | 3 | 0 | 0 | 174 | 5,552 | 403 | 21 | 381 | March 27, 2026 (68, 69) |
| Wendy’s | 2025 | 5,552 | 100 | 3 | 15 | 35 | 53 | 5,546 | 381 | 2 | 423 | March 27, 2026 (68, 69) |
How should a buyer read a brand’s closure record before signing?
Start with Table 3 for the last three years, then check Table 4 and the exit exhibit for the same years, then compare the count with anything filed or announced after the FDD date. The decision table below sets thresholds we use editorially, each tied to a case in the 14 FDDs; it is a reading aid, not legal, financial or investment advice.
| If the FDD shows this | Then do this before signing | Why (example from the dataset) |
|---|---|---|
| Terminations, non-renewals and ceased operations together exceed 10% of start-of-year franchised outlets in any of the 3 years | Call former franchisees from the Item 20 exit list for that year and ask why they left | Kung Fu Tea’s 58 terminations in FY2025 equal 15.0% of its 387 starting outlets |
| Reacquired by franchisor is more than half of all exits in a year | Read Table 4 for the same year to confirm the outlets reopened as company-owned | Burger King’s 1,061 FY2024 reacquisitions appear again in Table 4, where company-owned outlets rose from 138 to 1,177 |
| The FDD’s fiscal year ended more than 120 days before you receive it, or the cover shows “as amended” | Ask for every quarterly revision and read the Item 20 footnotes | Pizza Hut’s October 8, 2026 amendment added 275 post-year closures in a footnote |
| A totals row does not add up (start + opened – exits does not equal end) | Ask the franchisor in writing which figure is correct | Chick-fil-A’s printed FY2025 row: 2,624 + 278 – 99 – 8 = 2,795, printed end 2,863 |
| Opened includes outlets sold by the franchisor to franchisees | Subtract Table 4 “sold to franchisee” from openings to see new restaurants | Papa John’s sold 85 company-owned outlets to franchisees in FY2025 while franchised openings were 162 |
| Closure news names a brand whose FDD you hold | Compare the news count with Table 3 and the latest company filing, and date each figure | Wendy’s: 71 U.S. franchised closures in FY2025 per its 10-K, matching Table 3 (53 + 15 + 3) |
- Download the brand’s latest Clean FDD from Minnesota CARDS and note the issuance date and any “as amended” date on the cover.
- In Item 20, Table 3, add terminations, non-renewals and ceased operations for each year and divide by outlets at the start of the year.
- Set reacquisitions aside, then check that Table 4 shows the same number as “reacquired from franchisee.”
- Read every footnote under Tables 3 and 4; Pizza Hut’s 275, Wendy’s 8 double-counted locations and Tropical Smoothie Cafe’s reopenings all sit there.
- Pick 5 to 10 names from the exhibit of franchisees who left in the last fiscal year and ask each why the outlet closed.
The broader due-diligence sequence, from first call to signing, is on the buying a franchise guide.
How we compiled this
We read Item 20, Tables 3 and 4, of 14 restaurant and food-service FDDs filed with the Minnesota Department of Commerce (CARDS), issued September 18, 2025 to October 8, 2026, and copied the totals rows exactly as printed for fiscal 2023 to 2025. We excluded Gong cha (restructured master-franchise tables), Smoothie King (a Marked FDD whose text did not extract cleanly), Steak n Shake (an FDD issued March 28, 2024) and Pizza Hut’s separate non-traditional FDD. Company statements come from SEC filings and attributed news, accessed November 3, 2026. Earnings data (Item 19) is outside the scope.
Frequently asked questions
Why are so many restaurant franchises closing in 2026?
The filings name underperformance. Wendy’s 10-K expects Project Fresh closures of 5% to 6% of U.S. restaurants, and Papa John’s 10-Q describes closing underperforming restaurants that lack a path to sustainable financial improvement. Pizza Hut’s FDD footnote lists low volume, lease expiration and relocations as reasons in its ceased-operations column.
Why are Dairy Queen locations closing?
Fox Business reported on July 10, 2026 that 42 Texas locations closed between February and March after the parent revoked an operator’s franchise rights over unfinished remodels, and that one Alaska franchisee closed 3 locations in late June. Dairy Queen did not comment. No Dairy Queen FDD was opened for this article; a July 15, 2026 CARDS capture listed no 2026 Clean FDD from American Dairy Queen Corporation.
Does a terminated franchise mean the restaurant closed?
Not always. Under 16 CFR 436.5(t), a termination ends the franchise agreement early without paying the franchisee; the building can reopen with a new owner. Tropical Smoothie Cafe’s FDD says 10 of its 13 terminated Arizona outlets in fiscal 2025 had reopened under other franchisees by the issuance date. The ceased operations column is the closer measure of dark restaurants.
How many Wendy's restaurants closed in 2025 and 2026?
Wendy’s FDD records 53 franchised outlets that ceased operations, 15 non-renewals, 3 terminations and 35 reacquisitions in fiscal 2025. Its 10-K counts 111 closures worldwide that year, 106 franchise-operated. Its 10-Q shows 286 U.S. franchised restaurants closed in the six months to June 28, 2026.
Where can I see a franchise's closures before buying?
Read Item 20, Tables 3 and 4, of the brand’s current FDD, which the franchisor must give you at least 14 calendar days before you sign under 16 CFR 436.2(a). Minnesota posts registered FDDs free on CARDS. Ask for quarterly revisions too: 16 CFR 436.7(b) requires them for material changes, and Pizza Hut’s 2026 amendment added 275 closures.
How current is the closure data in an FDD?
An FDD counts outlets to the end of the franchisor’s last fiscal year and must be reissued within 120 days of that date under 16 CFR 436.7(a). For the 14 FDDs here, that means fiscal years ending between May 2025 and January 2026, so closures announced in mid 2026 are absent unless an amendment adds them.
Sources
All sources accessed November 3, 2026. FDD links open the Minnesota CARDS copy.
- Blaze Pizza FDD, issued April 30, 2026, Item 20 (CARDS 36377-202604-09)
- Burger King FDD, issued March 26, 2026, amended September 2, 2026, Item 20 (CARDS 37219-202609-03)
- Chick-fil-A FDD, issued March 31, 2026, amended October 2, 2026, Item 20 (CARDS 37426-202610-03)
- Cold Stone Creamery FDD, issued March 27, 2026, Item 20 (CARDS 35603-202603-14)
- Dave’s Hot Chicken FDD, issued May 4, 2026, Item 20 (CARDS 36528-202605-09)
- Kung Fu Tea FDD, issued April 20, 2026, revised July 6, 2026, Item 20 (CARDS 37009-202607-08)
- Papa John’s FDD, issued March 30, 2026, Item 20 (CARDS 35810-202604-11)
- Paris Baguette FDD, issued March 30, 2026, Item 20 (CARDS 35764-202604-03)
- Pizza Hut FDD, issued March 25, 2026, amended October 8, 2026, Item 20 (CARDS 37386-202610-03)
- Popeyes FDD, issued March 20, 2026, Item 20 (CARDS 35549-202603-10)
- Sharetea FDD, issued March 5, 2026, Item 20 (CARDS 35982-202604-13)
- Tapioca Express FDD, issued September 18, 2025, Item 20 (CARDS 34840-202509-08)
- Tropical Smoothie Cafe FDD, issued April 17, 2026, amended June 10, 2026, Item 20 (CARDS 36853-202606-04)
- Wendy’s FDD, issued March 27, 2026, amended May 29, 2026, Item 20 (CARDS 36754-202605-02)
- 16 CFR 436.5(t), Item 20: Outlets and Franchisee Information, GovInfo, CFR 2026 edition
- 16 CFR 436.7, Instructions for updating disclosures, GovInfo, CFR 2026 edition
- 16 CFR 436.2, Obligation to furnish documents, GovInfo, CFR 2026 edition
- The Wendy’s Company, Form 10-K for the fiscal year ended December 28, 2025, SEC EDGAR
- The Wendy’s Company, Form 10-Q for the quarter ended June 28, 2026, SEC EDGAR
- Papa John’s International, Form 10-Q for the quarter ended June 28, 2026, SEC EDGAR
- Denny’s Corporation, Form 15-12G filed January 26, 2026, SEC EDGAR
- Minnesota CARDS search for franchisor dairy queen, Wayback Machine capture of July 15, 2026, accessed November 3, 2026
- Denny’s closes another 5 locations in Minnesota and Wisconsin, Nation’s Restaurant News, September 9, 2026, accessed November 3, 2026
- Beloved American ice cream chain shuttering dozens of stores nationwide, Fox Business, July 10, 2026, accessed November 3, 2026