Smile Source Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Smile Source is a membership network for independent dental practices, giving owner-dentists group purchasing, marketing, and peer collaboration to compete without joining a DSO. Franchisees run their own dental practice while tapping the network's vendor savings and support.
FranchiseVerdict summary · 2026
A Smile Source franchise requires a total initial investment of $6K – $31K. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $6K – $31K
- 1st pct Healthcare
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 663
- 79th pct Healthcare
- SBA charge-off
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $6K – $31K.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Smile Source L.P.
- Parent company
- Smile Source Management L.L.C. (General Partner); wholly owned by 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
- Texas (Texas Limited Partnership)
- 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
- CEO
- Greggory D. Groenemann
- Headquarters
- TX
- Founded
- 2006
- FDD year
- 2023
- States available
- 45
Can you afford it, and what does the money buy?
Entry cost runs 96% below the typical healthcare franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown16 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 – $31K
- Top 40% of category vs category
- Liquid capital req'd
- N/A
- Cash you must have on hand
- Franchise fee
- N/A
- Top 40% of category 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Smile Source did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Smile Source unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
152%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 2.0% — below the Healthcare average of 8.8%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 11.6% CAGR over 3 years across 663 units — operators are staying and new ones are joining.
Multi-unit rate
Only 7% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Healthcare averages
How Smile Source Compares
Is the system healthy?
Source: FDD 2023 · Item 20
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 (3-yr)
- +11.6%
- Net unit change over 3 years
- 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
- limited sample (1 loan) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
One minor concern: Item 19 not disclosed. Otherwise clean — no litigation, no bankruptcy, positive net worth $138,906, audited financials, and a large growing 663-unit franchised system (+11.6%).
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 71 / 100 verdict
- 01MEDItem 19 not disclosed
- 02MINORNo litigation, no bankruptcy
- 03MINORPositive net worth $138,906, audited
- 04MINORLarge growing system: 663 units, +11.6%
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 2.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 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 – $31K. 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 Item 19 in the Smile Source FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Smile Source FDD and qualifies whose outlets they describe.
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 A-grade franchise with a verdict score of 71 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Smile Source, you can request corrections or provide updated information.
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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.