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Log In / Register | May 25, 2017

State by State Analysis of QSR Terminations and Ceased Operations

Based on a sample of quick service franchise systems from 2015, we compiled Top 10 state lists of net growth, highest termination rates and highest ceased operation rates from 2014.

Key characteristics of the sample are:

  • 100 franchise systems with
  • 81,046 franchised outlets at the end of 2014
  • Sample grew by 6.7% since 2012
  • Sample Grew by 1.49% in 2014
  • Overall 2014 ceased operations rate of 2.3%, below the industry average of 2.8%
  • Overall 2014 termination rate of 0.91%, well below industry average of 1.9%
  • Top 10 lists are created from States with a minimum of 500 outlets open at the end of 2014

Outlet Growth

Rank Net Positive Growth Outlets Opened Net Negative Growth
1 AR TX SC
2 FL FL OR
3 KY NY WA
4 WI CA UT
5 AL IL CO
6 TX MI LA
7 OH PA NC
8 GA NJ CA
9 KS OH MO
10 MA GA IA

 

Turnover Analysis

Rank Highest Termination Rate Highest Ceased Operations Rate
1 OK OR
2 OR CO
3 NV NJ
4 CO SC
5 UT WA
6 MI IL
7 AZ NY
8 NJ CA
9 TX MD
10 MO TX

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About Jeff Lefler

Jeff Lefler's picture

Public Profile

Jeff Lefler is CEO at FranchiseGrade.com.  

Jeff has fifteen years of small business experience, ten of those in franchising. He currently owns a successful franchise and in 2008 he created an Independent Franchisee Association representing Canada Bread Franchisees. Jeff was also a Member of the Strategic Committee of the International Association of Franchisees and Dealers.

Jeff can be reached at:

Email: jeff.lefler@franchisegrade.com
Office: 1-800-975-6101 x. 208
Cell: 1-519-859-0228

About FranchiseGrade.com​

FranchiseGrade.com is the leader in competitive market research and objective analysis for the franchise industry. We compare and grade franchise systems for their investment value. Our motivation is simple: we want to raise the bar in franchise industry market research and build a stronger franchise community in the process. 

Our reports, reviews and assessment services are available to franchisees, franchisors and investors alike:

System Report Cards
Purchase Franchise Disclosure Documents
Sector Reports
Made The Grade

For information, contact insights@franchisegrade.com or call 1 (800) 975 6101

Area of Interest
Buying a Franchise