Smile SourceFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Smile Source franchise requires a total initial investment of $6K – $435K. The 2023 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $6K – $435K
- 2nd pct Healthcare
- Avg gross sales
- N/A
- 48th pct Healthcare
- Royalty
- N/A
- Units
- 663
- 75th pct Healthcare
- SBA default
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare 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
Franchised units fell from 663 to 594 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $6K – $435K including a $0 franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 54/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Smile Source L.P.
- Parent company
- SSH Corporation
- Ultimate parent
- Smile Source Holdings, L.P. (controlled by Incline Equity Partners)
- CEO title
- President, Chief Executive Officer and Secretary
- Greggory D. Groenemann
- Incorporated in
- TX
- HQ
- 4025 Feather Lakes Way #5858, Kingwood, Texas 77339
- Auditor
- FORVIS, LLP
- Audited financials
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Smile Source franchisees operate dental support service centers or hygiene practices, likely providing clinical dental services, administrative support, or hygiene-focused care to patient populations. Day-to-day operations include patient scheduling, clinical service delivery, billing/compliance, and local marketing to grow the patient base within their territory.
- CEO
- Greggory D. Groenemann
- Headquarters
- TX
- Founded
- 2006
- FDD year
- 2023
- States available
- 45
FDD Item 7 · 2023 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (New Office)not refundable | — | — | |
| Architectural & Miscellaneous Site Improvement Changesnot refundable | $5K | $300K | |
| Leasing of Dental Care Center (deposit and first month's rent) | $3K | $6K | |
| Signagenot refundable | $3K | $10K | |
| Legal Feesnot refundable | $800 | $1K | |
| Initial Inventories (Dental Supplies)not refundable | $20K | $40K | |
| Point-of-Sale Computer & Accounting Set-upnot refundable | $2K | $8K | |
| Office Equipment and Furniturenot refundable | $2K | $10K | |
| Prepaid Expenses and Deposits | $2K | $3K | |
| Practice Development Expensesnot refundable | $2K | $5K | |
| Insurance (initial premium)not refundable | $1K | $2K | |
| Additional Funds - 3 Monthsnot refundable | $20K | $50K | |
| Initial Franchise Fee (Existing Office)not refundable | — | — | |
| Signage (Existing Office)not refundable | $3K | $10K | |
| Initial Inventories - Dental Supplies (Existing Office)not refundable | $2K | $20K | |
| Legal Fees (Existing Office)not refundable | $800 | $1K | |
| Total initial investment | $66K | $466K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $6K – $435K
- Better than avg vs category
- Liquid capital req'd
- N/A
- Below avg, review vs category
- Franchise fee
- N/A
- Better than avg vs category
- Royalty
- Up to 2.00% of Gross Receipts, but currently 1.45% for ne…
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 2.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% of gross sales |
| Total fee load | 2.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Healthcare averages
How Smile Source Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 663
- Opened
- 124
- Last reporting year
- Closed
- 86
- Terminated
- 27
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 36
- Term expired, not renewed (per Item 20)
- Turnover rate
- 13.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 7.1%
- Net growth (yr3)
- +6.1%
- Net unit change last year
- 3-yr CAGR
- +11.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
- Projected new
- 203
- Franchisor's next-year forecast
- Termination rate
- 9.5%
- Franchisor-initiated terminations
- Ceased ops
- 16.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 45 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $541K
- Median loan
- $541K
- average
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Smile Source presents a cautionary risk profile due to lack of financial transparency, unprotected territories, below-average unit growth, and undisclosed unit economics that prevent proper ROI validation.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · FORVIS, LLP
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 54 / 100 rating
- 01MEDNo average revenue or net income disclosed (Item 19) — impossible to validate ROI or unit economics
- 02MINORUnprotected territory creates direct competition risk; no exclusivity guarantee
- 03MINORWide investment range ($5,800–$435,000) suggests inconsistent model; unclear what drives cost variance
- 04MINORModest 6.1% YoY growth with 663 units is below industry standards; growth trajectory unclear
- 05MINORRoyalty rate increase (1.45% → 1.50%) announced July 2023 signals margin pressure on franchisees
- 06MINOR5-year term is shorter than industry standard (10 years typical); renewal risk and instability
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Radius around location |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
734 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Smile Source · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Smile Source franchise?
The total investment to open a Smile Source franchise ranges from $6K – $435K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Smile Source franchise owners earn?
Smile Source does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Smile Source's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Smile Source (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Smile Source franchise locations are there?
As of their most recent FDD filing, Smile Source has 663 total units in the United States, including 663 franchised units and 0 company-owned units. 124 new units were opened in the latest reporting year.
Is Smile Source a good franchise to buy?
FranchiseVerdict rates Smile Source as a B-grade franchise with a risk score of 54 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.