ITEMS 5–7 · FDD 2020

How much is a Smile Source franchise?

Per Smile Source's 2020 FDD, the initial franchise fee is $0 (Item 5) and the total initial investment runs $61K–$435K (Item 7); once open, you pay an ongoing royalty of 1.4% of gross sales (Item 6).

Franchise fee · Item 5

one-time, to buy in

Royalty · Item 6

1.4%

of gross sales, ongoing

Total investment · Item 7

$61K–$435K

franchisor's own estimate

Breakeven framingwhat it costs · what it drags

The buy-in is the smaller number. The larger one is the drag: 1.4% of every sale leaves before rent, labor, or your salary — so breakeven depends on volume you cannot know from the FDD, and this brand publishes no Item 19 earnings data to anchor it.

To open (Item 7)

$61K–$435K

all-in investment range

Franchise fee (Item 5)

upfront, one-time

Royalty (Item 6)

1.43%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.

Royalty you'd pay / yr

$14K

1.43% of sales, before profit

Over a 10-yr term

$143K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for Smile Source with an independent CPA

SOURCE: MN CARDS · FILED 2020 · ITEMS 5–7

Smile Source cost questions, answered from the filing

How much is a Smile Source franchise?

Per Smile Source's 2020 FDD, opening a franchise requires an initial franchise fee of $0 (Item 5) and a total initial investment of $61K–$435K (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.

What royalty does Smile Source charge?

Smile Source charges an ongoing royalty of 1.4% of gross sales, per Item 6 of its 2020 FDD.

Does Smile Source tell you what franchisees earn?

No — Smile Source's 2020 FDD makes no Item 19 earnings claim, so any revenue figure you hear comes from sales conversations, not disclosure documents. Validate with current and former franchisees.

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A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Smile Source's numbers, including talking you out of a bad deal.

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