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FranchiseVerdict

How Much Does a Smile Source Franchise Cost?

Data from the 2023 Franchise Disclosure Document

Investment Summary

Total Investment

$6K – $435K

Franchise Fee

N/A

Royalty

Up to 2.00% of Gross Receipts, but currently 1.45% for new franchisees, effective July 1, 2023 the rate will increase to 1.50% for new franchisees.

Ad Fund

0.0%

Cost Breakdown

Initial Franchise Fee

Smile Source has not disclosed a standard initial franchise fee. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Smile Source franchise requires a total investment of $6K – $435K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $20K to $50K.

Ongoing Costs

Beyond the initial investment, Smile Source franchisees pay ongoing fees. The royalty structure is: Up to 2.00% of Gross Receipts, but currently 1.45% for new franchisees, effective July 1, 2023 the rate will increase to 1.50% for new franchisees.. The advertising or brand fund contribution is 0.0% of gross sales.

Net Worth & Liquid Capital Requirements

Smile Source requires working capital of $20K – $50K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Smile Source does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Smile Source?

SBA Loans Issued

1

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Smile Source has 1 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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