Smile Source franchise
2023 filing · March 15, 2023Fewer locations
Smile Source at a glance
A network of independently owned dental practices sharing a brand, buying power and practice support. At the end of 2022 there were 663 Smile Source locations in the US, all franchised.
The business
- Franchisor
- Smile Source L.P
- The company that sells the franchises
- Current franchisor selling since
- 2006
- 17 years of selling franchises
- Franchisor based in
- Kingwood, Texas
What you pay
- Cost to open
- $61K–$435K
- Opening a new office
- Franchise fee
- $0
- Paid once, when you sign
- Royalty
- 1.45%
- Up to 2% of gross receipts, currently 1.45% for new members (1.50% from July 1, 2023), paid monthly
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 663
- Franchised and company-owned
- Franchised
- 663
- Company-owned
- 0
- Change in 3 years
- −71
- Franchised locations, 2020–2022
- States
- 43
- Most in Texas, Georgia and Tennessee
From Smile Source L.P’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Smile Source among all franchises with the same figure.
| Figure | Smile Source | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $247,750 | Costs less than 63% of franchises |
| Franchise feePaid once, when you sign | $0 | Lower than 99% of franchises |
| RoyaltyShare of sales paid to the franchisor | 1.4% | Lower than 100% of brands with a set rate |
| US locationsFranchised and company-owned | 663 | More than 96% of franchises |
How much a Smile Source franchise costs
Opening opening a new office costs an estimated $60,500 to $435,000. That covers the franchise fee and everything else needed to open, through the first months of working capital. It is one of the low-cost franchises.
The biggest costs are architectural & miscellaneous site improvement changes ($5,000 to $300,000) and additional funds – 3 months ($20,000 to $50,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $0 | ||
| Architectural & Miscellaneous Site Improvement Changes | $5,000 | $300,000 | |
| Leasing of Dental Care Center (deposit and first month’s rent) | $2,500 | $6,000 | |
| Signage | $3,000 | $10,000 | |
| Legal Fees | $800 | $1,200 | |
| Initial Inventories (Dental Supplies) | $20,000 | $40,000 | |
| Point-of-Sale Computer & Accounting Set-up | $2,000 | $8,000 | |
| Office Equipment and Furniture | $2,000 | $10,000 | |
| Prepaid Expenses and Deposits | $2,000 | $3,000 | |
| Practice Development Expenses | $2,000 | $5,000 | |
| Insurance (initial premium) | $1,200 | $1,800 | |
| Additional Funds – 3 Months | $20,000 | $50,000 | |
| Total | $60,500 | $435,000 | |
Source: Smile Source L.P, 2023 filing, page 16
Smile Source franchise fee
The franchise fee is $0. You pay it when you sign the franchise agreement.
Source: Smile Source L.P, 2023 filing, page 10
Royalty and ongoing fees
| Royalty | Up to 2% of gross receipts, currently 1.45% for new members (1.50% from July 1, 2023), paid monthly. |
|---|---|
| Point-of-Sale Computer & Accounting Set-up | $2,000 to $8,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Smile Source L.P, 2023 filing, page 10
Other fees as filed, from page 16. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Smile Source does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Smile Source L.P, 2023 filing, page 33
SBA loans to Smile Source franchisees
Lenders approved one SBA 504 loan for a Smile Source franchisee in 2015, for $541K. It hasn’t been paid off or charged off yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2022 / 2020–2022. Typical means the median: half of brands are above it, half below.
| Measure | Smile Source | Typical franchise |
|---|---|---|
| GrowthNet change in franchised locations | +6.1% / −9.7% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 14% / 52% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% |
How Smile Source compares
Typical means the median: half of brands are above it, half below.
| Figure | Smile Source | Typical franchise |
|---|---|---|
| Cost to open, low end | $61K | $222K |
| Cost to open, high end | $435K | $477K |
| Franchise fee | $0 | $40K |
| Royalty | 1.4% | 6% |
| US locations | 663 | 21 |
| Shares earnings figures | No | 2,147 of 3,352 |
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 594 (−140) | 0 | +76 | −216 |
| 2021 | 625 (+31) | 0 | +112 | −81 |
| 2022 | 663 (+38) | 0 | +124 | −86 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: dental franchises and franchise failure rates.
Source: Smile Source L.P, 2023 filing, page 34
Where Smile Source locations are
At the end of 2022, Smile Source had franchised locations in 44 states and territories. The most are in Texas, Georgia and Tennessee.
- Texas54
- Georgia53
- Tennessee48
- Washington36
- Pennsylvania29
- South Carolina29
| State | Franchised |
|---|---|
| Texas | 54 |
| Georgia | 53 |
| Tennessee | 48 |
| Washington | 36 |
| Pennsylvania | 29 |
| South Carolina | 29 |
| Mississippi | 27 |
| Michigan | 26 |
| Ohio | 24 |
| Oklahoma | 23 |
All 44 states
Source: Smile Source L.P, 2023 filing, page 35
Who owns Smile Source?
Smile Source franchises are sold by Smile Source L.P.
From Smile Source L.P’s 2023 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Smile Source L.P, 2023 filing, litigation on page 10, bankruptcy on page 10
Smile Source filings
The figures on this page come from Smile Source L.P’s 2023 filing, issued March 15, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | March 15, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
