FDD ITEM 20 · FISCAL 2013–2019
Smile Source Item 20: outlets, exits & growth
In its latest FDD Item 20 (fiscal 2019, from the 2020 FDD · 5+ years old), Smile Source reported 734 franchised outlets at year end. 68 of 623 franchised outlets open at the start of the year left the system (exit rate 10.9%, fiscal 2019), while 179 new outlets opened. Systemwide units moved +30.6% over 2017–2019.
| Status (FTC) | 2013 | 2014 | 2015 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| Outlets at start | 58 | 145 | 269 | 470 | 562 | 623 |
| Opened | 100 | 150 | 114 | 161 | 143 | 179 |
| Transfers | 0 | 0 | 3 | 2 | 2 | 2 |
| Terminations | 7 | 18 | 31 | 49 | 11 | 28 |
| Non-renewals | 2 | 5 | 0 | 2 | 13 | 30 |
| Reacquired by franchisor | 0 | 0 | 0 | 0 | 0 | 0 |
| Ceased — other reasons | 4 | 3 | 0 | 17 | 59 | 10 |
| Outlets at end | 145 | 269 | 352 | 562 | 623 | 734 |
| Net change | +87 | +124 | +83 | +92 | +61 | +111 |
28 terminations + 30 non-renewals + 10 ceased (other) = 68 exits ÷ 623 at start = 10.9%
These are the three FTC Item 20 statuses in which a franchised outlet left the system — including voluntary non-renewals and outlets that ceased for other reasons, which can include sales or absorption into another franchise. Transfers (2) are resales, not exits; reacquisitions by the franchisor (0) are tracked separately. There is no official “failure rate”, and not every exit is a closure or a failure; Item 20 does not say why any outlet left. On a small starting base, a single exit moves this rate sharply.
| State | Franchised | Company-owned |
|---|---|---|
| TX | 104 | 0 |
| GA | 77 | 0 |
| WA | 57 | 0 |
| TN | 56 | 0 |
| FL | 29 | 0 |
| CA | 27 | 0 |
| CO | 27 | 0 |
| MI | 27 | 0 |
| MS | 26 | 0 |
| PA | 25 | 0 |
| OK | 23 | 0 |
| MN | 22 | 0 |
| OH | 22 | 0 |
| AR | 17 | 0 |
| IL | 15 | 0 |
| MD | 15 | 0 |
| IN | 13 | 0 |
| MO | 13 | 0 |
| NJ | 11 | 0 |
| SC | 10 | 0 |
| ID | 9 | 0 |
| KS | 9 | 0 |
| NY | 9 | 0 |
| CT | 8 | 0 |
| IA | 8 | 0 |
| LA | 8 | 0 |
| NC | 8 | 0 |
| AZ | 7 | 0 |
| MA | 7 | 0 |
| VA | 7 | 0 |
| WI | 7 | 0 |
| UT | 5 | 0 |
| AL | 3 | 0 |
| HI | 3 | 0 |
| NE | 3 | 0 |
| OR | 3 | 0 |
| AK | 2 | 0 |
| KY | 2 | 0 |
| MT | 2 | 0 |
| NM | 2 | 0 |
| NV | 2 | 0 |
| WV | 2 | 0 |
| DC | 1 | 0 |
| NH | 1 | 0 |
| RI | 0 | 0 |
| VT | 0 | 0 |
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