HomeSmilesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A HomeSmiles franchise requires a total initial investment of $148K – $202K, including a $60K franchise fee. Per the 2026 FDD, average unit revenue was $584K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 26 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $148K – $202K
- 54th pct Home Services
- Avg gross sales
- $584K
- 20th pct Home Services
- Royalty
- N/A
- Units
- 43
- 37th pct Home Services
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.3x in gross revenue, well above the typical 1.5-2.5x range.
Only 0.0% of 26 SBA loans charged off, well below the 16% franchise average.
The system grew 367% year-over-year. Fast growth means demand, but can strain support.
118% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $148K – $202K including a $60K franchise fee.
- Average unit revenue of $584K/year (median $584K), with an estimated 118% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 28/100. SBA loan charge-off rate of 0.0% across 26 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Revenue data based on only 2 reporting units. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Home Smiles Franchising, LLC
- Predecessor
- Home Smiles
- Prior franchisor entity
- Incorporated in
- CA
- HQ
- 1526 Stafford Street, Redwood City, California 94063
- Auditor
- Alfred J. Lutfy, CPA
- Audited financials
- Franchisor revenue
- $386K
- vs $1.3M prior year
Affiliated brands
- and predecessor
- and predecessor Home Smiles
- uses the Licensed Marks and System in the operation of a HomeSmiles Business
Other brands the franchisor or its parent operates (Item 1).
Overview
About
HomeSmiles franchisees operate a home services or dental/cosmetic smile-related business (likely teeth whitening, cosmetic dentistry support, or home-based smile care services). Day-to-day activities include client acquisition, service delivery/treatment provision, appointment scheduling, marketing in protected territory, and managing recurring revenue from customer retention programs.
- CEO
- Jesshill E. Love
- Headquarters
- CA
- Founded
- 2020
- FDD year
- 2026
- States available
- 23
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $42K | $65K |
| Equipment, build-out, other | $46K | $78K |
| Total initial investment | $148K | $202K |
Source: HomeSmiles 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$64K
11.0% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $148K – $202K
- Near category avg vs category
- Liquid capital req'd
- $42K – $65K
- Below avg, review vs category
- Franchise fee
- $60K – $295K
- Near category avg vs category
- Royalty
- Greater of 6% of Gross Sales or Minimum Monthly Royalty F…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 0.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $297 |
| Transfer fee | $15K |
| Renewal fee | $8K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $584K
- Per unit, per year
- Median gross sales
- $584K
- Avg p&l bottom line
- $206K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 117.5%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historic performance of franchised outlets
- Sample size
- 2 units
- vs category median 25 · small
- Range (low → high)
- $219K→$949K
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 349 Home Services brands
vs Home Services averages
How HomeSmiles Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 43
- Opened
- 40
- Last reporting year
- Closed
- 7
- Turnover rate
- 16.3%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 26
- Loan volume
- $4.8M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into HomeSmiles's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 14 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 26 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hypergrowth franchise with opaque franchisor financials, aggressive royalty structure, and no earnings claim substantiation presents meaningful execution and profitability risk despite strong unit economics on paper.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $294,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Alfred J. Lutfy, CPA
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 28 / 100 rating
- 01MINORExtreme unit growth (366.7% YoY) suggests either aggressive recruitment or system instability—unsustainable expansion raises retention/profitability concerns
- 02MINORMinimum monthly royalty fee structure (greater of 6% or minimum) may be onerous for franchisees in slower markets and creates cash flow risk
- 03HIGHGoing Concern = False is absent/unclear; lack of transparency on franchisor financial health is a major red flag
- 04MINORHigh franchise fee ($59,500) combined with wide investment range ($148k-$202k) and aggressive royalty structure creates elevated break-even pressure
- 05MEDNo Item 19 (Earnings Claim Document) disclosed—cannot independently verify if $205k average net income is achievable or realistic
- 06HIGHRapid expansion without disclosed litigation may indicate emerging disputes or franchisee dissatisfaction not yet surfaced in legal filings
- 07MINORWide investment range spread ($54k delta) suggests inconsistent territory setup costs or undefined support/infrastructure scaling
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population-based |
| Protected territory | Yes |
| Territory sizeℹ | 250,000 people |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 24 hrs
- Training location
- On-site and corporate
- POS system
- Serviceminder
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Serviceminder
Item 20 · call current owners
Franchisee Contacts
42 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
HomeSmiles · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HomeSmiles franchise?
The total investment to open a HomeSmiles franchise ranges from $148K – $202K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HomeSmiles franchise owners earn?
According to Item 19 of the HomeSmiles FDD, the average gross sales per unit is $584K. The median is $584K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is HomeSmiles's franchise failure rate?
Based on SBA 7(a) loan data, HomeSmiles has a charge-off rate of 0.0% across 26 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many HomeSmiles franchise locations are there?
As of their most recent FDD filing, HomeSmiles has 43 total units in the United States, including 9 franchised units and 1 company-owned units. 40 new units were opened in the latest reporting year.
Is HomeSmiles a good franchise to buy?
FranchiseVerdict rates HomeSmiles as a A-grade franchise with a risk score of 28 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.