FILING · MN · 2020 FDD · 5+ YEARS OLD
Smile Source FDD (Franchise Disclosure Document) — 2020
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). Smile Source's most recent FDD tracked here is the 2020 FDD · 5+ 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 2020 · SOURCE STATE MN
| ITEM 5 | Initial franchise fee | $0 |
| ITEM 6 | Ongoing royalty | 1.4% of gross sales |
| ITEM 7 | Total initial investment | $61K–$435K |
| ITEM 3 | Disclosed litigation matters | 0 |
| ITEM 19 | Earnings disclosure (FPR) | None — no earnings claim published |
| ITEM 20 | Outlets (fiscal 2019) | 734 franchised at year end · 68 exits (exit rate 10.9%, fiscal 2019) |
| ITEM 21 | Franchisor financial statements | Unmodified (clean) opinion — BKD, LLP |
BKD, LLP gave an unmodified (clean) opinion on the statements in the 2020 FDD; it reported a net loss in FY2018 and FY2019.
Revenue · FY2019
not extracted
withheld · scale unclear
Net income · FY2019
−$14K
p. 44 · matched to statement
Where FY2019 revenue came from
Royalty share not extracted
initial-fee share not extracted
- Fiscal years covered: FY2017, FY2018, FY2019 (2020 FDD, statements from p. 44)
- Statements are for: Smile Source Marketing, Inc.
- Parent / owner: not identified in the statements
| Fiscal year | FY2017 | FY2018 | FY2019 |
|---|---|---|---|
| Total revenue | not extractedwithheld · scale unclear | not extractedwithheld · scale unclear | not extractedwithheld · scale unclear |
| Net income (loss) | $0p. 44 · matched to statement | −$63Kp. 44 · matched to statement | −$14Kp. 44 · matched to statement |
| Cash at year end | $251Kp. 43 | $280Kp. 43 | $315Kp. 43 |
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 2020 Smile Source 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.
Smile Source FDD questions, answered
Where can I download the Smile Source FDD for free?
Smile Source's 2020 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 Smile Source's most recent FDD on file?
The most recent Smile Source FDD tracked here is the 2020 FDD · 5+ 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 Smile Source's FDD disclose earnings (Item 19)?
No — Smile Source's 2020 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 Smile Source's FDD Item 20 show?
In fiscal 2019, Smile Source ended with 734 franchised outlets; 68 of 623 open at the start of the year left the system (exit rate 10.9%, fiscal 2019) through terminations, non-renewals, and "ceased operations — other reasons".
The Smile Source validation checklist
questions built from this brand's own filings · read them all on the profile
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