Published on 6 Jan 2023 Time 4 min read Last update by 13 May 2024

Smile Source Franchise Opportunity for 2024

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Smile Source franchises operate a dental office, in a specific territory, for routine dental treatments, conducting examinations to diagnose extensive implants and cosmetic and orthodontic elective health problems. They use corrective tooth loss and esthetic measures such as dental prosthetic implant replacements or orthodontic and cosmetic corrections and provide all other areas of dental care

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How Much Is a Smile Source Franchise?

The initial Smile Source Franchise Fee is $0. You do not have to pay an upfront fee.

Smile Source Franchise Cost

The estimated total investment necessary to begin the operation of a Smile Source franchise ranges from $60,500 to $435,000. The following costs are part of the upfront costs included in the initial investment. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Smile Source franchise in 2022.

Type of expediture Amount To Whom Payment Is To Be Made
Initial Franchise Fee None
Architectural % Miscellaneous Site Improvement Changes $5,000 to $300,000 Vendors
Leasing of Dental Care Center (deposit and first month’s rent) $2,500 to $6,000 Landlord
Signage $3,000 to $10,000 Suppliers
Legal Fees $800 to $1,200 Attorneys
Initial Inventories (Dental Supplies) $20,000 to $8,000 Vendors
Point of Sale Computer & Accounting Set-Up $2,000 to $8,000 Vendors and Accounting Professional
Office Equipment and Furniture $2,000 to $10,000 Suppliers
Prepaid Expenses and Deposits $2,000 to $3,000 Vendors & Utilities
Practice Development Expenses $2,000 to $5,000 Suppliers
Insurance (initial premium) $1,200 to $1,800 Insurance Company
Additional Funds – 3 Months $20,000 to $50,000 Employees, Vendors & Sippliers
TOTAL $60,500 to $435,000

Ongoing Fees

Royalty: Up to 2.00% of Gross Receipts, but currently 1.45% for new franchisees

Registration Fee for Attendees at Annual Meeting: A registration fee for attendance at the annual meeting is charged. For the 2022 annual meeting, the registration fee is $750 per person; i.e., dentists, associates, staff members, and family members. The fee covers meals for all paid attendees. The registration fee is subject to change by Smile Source.

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Franchisor Income Statement Key Insights

Smile Source does not disclose its financials, instead saying, “Our separate financial statements as of December 31, 2021, 2020 and 2019 are not included in this disclosure document. Should we fail to fulfill our duties and obligations to our franchisees under their franchise agreements, however, Smile Source Marketing, Inc. absolutely and unconditionally guarantees to assume those duties and obligations.”

It is concerning that they do not disclose this information.

How Many Smile Source Units Have Opened and Closed?

Outlet type Year Outlets at the Start of the Year Outlets at the End of the Year Net Change
Franchised 2019 623 764 111
2020 734 594 -140
2021 594 625 31
Company-Owned 2019 0 0 0
2020 0 0 0
2021 0 0 0
Total Outlets 2019 623 734 111
2020 734 594 -140
2021 594 625 31

Over the last three years, the company has seen a lot of turbulence.

Over the last three years, franchises have opened at an average rate of under 1 unit a year. This is an indicator that these stores may not be performing well.

Or their franchise term is up and they are not renewing it. This figure, however, comes from data revealing that in 2020, 140 franchisees closed shop altogether and the number of franchises dropped from 734 to 594.

Smile Source is also on our franchise failure rate list where it is ranked #43, with 225 failures in the 2017-2019 time period.

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As a Smile Source franchisee, you will have the opportunity to operate your own dental office in a specific territory. The initial investment for a Smile Source franchise ranges from $60,500 to $435,000, and there is no upfront franchise fee required.

Ongoing fees for a Smile Source include a royalty of up to 2% of gross receipts, currently set at 1.45% for new franchisees, and a registration fee for attendance at the annual meeting, currently set at $750 per person.

While Smile Source has not disclosed its financials, data shows that 140 franchisees closed in 2020, leading to a drop in the number of franchises from 734 to 594. Additionally, this brand has a high failure rate, ranking #43 with 225 failures in the 2017-2019 time period. It is important to carefully consider these factors before deciding if a Smile Source franchise is the right opportunity for you.

While this may be the business for you, make sure to also check out other companies offered on Vetted Biz and in the Medical industry.

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