FILING · MN · 2021 FDD · 4+ YEARS OLD
HomeSmart FDD (Franchise Disclosure Document) — 2021
The FDD is the 23-item legal disclosure every U.S. franchisor must hand you at least 14 days before you sign or pay anything (FTC Franchise Rule, 16 CFR 436). HomeSmart's most recent FDD tracked here is the 2021 FDD · 4+ years old, filed with the Minnesota Department of Commerce (public CARDS portal) (a newer issuance very likely exists; ask the franchisor for it). Registration-state filings are public records, so you can read it free, with no sign-up.
PUBLIC RECORD · FILED 2021 · SOURCE STATE MN
| ITEM 5 | Initial franchise fee | $20,000 |
| ITEM 7 | Total initial investment | $66K–$205K |
| ITEM 3 | Disclosed litigation matters | 1 |
| ITEM 19 | Earnings disclosure (FPR) | None — no earnings claim published |
| ITEM 20 | Outlets (fiscal 2020) | 145 franchised at year end · 2 exits (exit rate 1.6%, fiscal 2020) |
| ITEM 21 | Franchisor financial statements | Unmodified (clean) opinion — Baldwin Moffitt PLLC |
Baldwin Moffitt PLLC gave an unmodified (clean) opinion on the statements in the 2021 FDD; revenue rose 35% from FY2018 to FY2020 and it reported a net loss in FY2018.
Audit opinion
Unmodified (clean) opinion
Baldwin Moffitt PLLC
Revenue · FY2020
$13.0M
extracted · not cross-checked
Net income · FY2020
$2.3M
extracted · not cross-checked
Where FY2020 revenue came from
Royalty share not extracted
initial-fee share not extracted
- Fiscal years covered: FY2018, FY2019, FY2020 (2021 FDD)
- Statements are for: not extracted
- Parent / owner: not identified in the statements
| Fiscal year | FY2018 | FY2019 | FY2020 |
|---|---|---|---|
| Total revenue | $9.6Mextracted · not cross-checked | $11.0Mextracted · not cross-checked | $13.0Mextracted · not cross-checked |
| Net income (loss) | −$118Kextracted · not cross-checked | $2.3Mextracted · not cross-checked | $2.3Mextracted · not cross-checked |
How to read this: royalties recur as long as franchisees trade; initial and development fees arrive only when new franchises are sold. A franchisor whose revenue leans on initial fees is funding itself by selling territories, and that revenue stops when sales slow. Under ASC 606 most franchisors recognize initial fees over the agreement term, so the line understates the cash collected in a strong selling year. Ad-fund revenue, where reported, is included in total revenue as the statements present it.
Each figure links to its page in the filed PDF. “Matched to statement” means our extraction and a second, rule-based read of the statement page agree; “extracted · not cross-checked” means the statement page is a scanned image or could not be read as text. Figures we could not place on a consistent scale are withheld, not guessed. Spotted an error? Report a correction.
Every figure above was extracted by software from the 2021 HomeSmart FDD as filed (figures are not individually checked by a person) and links back to that document. Fields that could not be extracted are omitted; no figure here is estimated. Extraction errors are possible: the filing controls, and FDDs are reissued annually; verify against the current issuance before relying on any number. Spotted an error? Franchisors and owners can report it via the contact on our Terms page.
HomeSmart FDD questions, answered
Where can I download the HomeSmart FDD for free?
HomeSmart's 2021 Franchise Disclosure Document is a public record, filed with the Minnesota Department of Commerce (public CARDS portal). It can be downloaded free from the source link on this page — no broker form, no email signup required.
What year is HomeSmart's most recent FDD on file?
The most recent HomeSmart FDD tracked here is the 2021 FDD · 4+ years old, filed with the Minnesota Department of Commerce (public CARDS portal). Franchisors must update their FDD annually, so a newer issuance very likely exists; confirm you are reading the current issuance before signing.
Does HomeSmart's FDD disclose earnings (Item 19)?
No — HomeSmart's 2021 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim.
What does HomeSmart's FDD Item 20 show?
In fiscal 2020, HomeSmart ended with 145 franchised outlets; 2 of 126 open at the start of the year left the system (exit rate 1.6%, fiscal 2020) through terminations, non-renewals, and "ceased operations — other reasons".
The HomeSmart validation checklist
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