About Dentsmart® Franchise
Dentsmart is an automotive services franchise specializing in paint free dent removal, also known as PDR (paintless dent repair).
The brand focuses on high quality vehicle dent repairs, working primarily through relationships with local body shops and insurance contacts.
The franchise fee is $25,000, and the company began franchising in 2024.
Dentsmart® Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 8% of Net PDR Sales; and 8% of Gross Non-PDR Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently none, but up to 2% of its combined Gross Revenues | National brand fund |
| Total Investment Range | $79,100 – $110,500 | Includes build-out, inventory, working capital |
The investment range of $79K–$111K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Net PDR Sales; and 8% of Gross Non-PDR Revenue) and marketing fee (Currently none, but up to 2% of its combined Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Training Expenses | $2,500 | $3,000 |
| Security and utility deposits and other costs associated with establishing your office | $0 | $4,500 |
| Office equipment, fixtures, leasehold improvements, whether purchased or leased | $1,000 | $1,000 |
| Tools | $10,000 | $10,000 |
| Business licenses and other licenses | $1,500 | $2,500 |
| Software and Hardware | $2,000 | $3,000 |
| Insurance | $2,500 | $3,000 |
| Grand opening advertising and marketing | $2,000 | $2,000 |
| Other Professional Fees | $3,500 | $5,500 |
| Technician Training | $9,000 | $9,000 |
| Additional Funds – 3 months | $20,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,000 |
| Renewal Fee | $5,000 |
| Technology Fee | $50 per month per technician engaged by you to perform PDR Repairs, plus $75 per month per employee with access to the estimating software, plus $2 per user at any body shop in the Territory with access to the “My Dentsmart Account” website. |
| Audit Fee | Costs of audit, including travel, lodging, and fees or wages for our personnel or third parties required to conduct the audit. |
| Administrative Fee | Currently $100, from which $20 is paid to us. |
| Reinspection Fee | An amount equal to the costs we incur |
| New Manager Training | $3,000 per person |
| Additional Training | Currently $350 per day per trainer, plus expenses |
| Relocation costs | The amount of costs we incur in relation to your relocation of your Franchised Business, if any. |
| Franchisee Conference Registration Fee | Currently none, but if charged it will be an amount set by us |
| Project Management System Fee | Currently none, but an amount we set |
| Additional Administrative Services | Currently, 2% of Net PDR Sales for front end billing services and payment processing; amounts set by us for other services |
| Quality Inspection Fee | An amount equal to the costs we incur |
| Public or private offering fee | $25,000 for a public offering; $10,000 for a private offering; or such higher amounts that are equal to the costs we incur |
| Alternative Supplier or Product Review Fee | The greater of $500 and our actual cost |
| Territory Increase Fee | Varies depending on the size of the territory expansion. |
| Indemnification | Will vary under the circumstances |
| Late Charge on Overdue Amounts | The lesser of 0.83% per month or the maximum rate allowed by law |
| Insurance | Actual cost of insurance and reasonable fee for us procuring it. |
| Fees associated with legal actions against you | Will vary under the circumstances |
| Fee for sale of unauthorized products or services | $250 per day |
| Temporary Management Assistance Fee | A reasonable amount if our management is the result of your death or incapacity; 5% if we manage the business while the sale of the Franchised Business to us is pending. |
| Liquidated Damages | Equal to the ongoing fees paid under the Franchise Agreement for the 24 months preceding the termination. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately four to five weeks |
| Classroom Training | 80 hours |
| On-the-Job Training | 80-120 hours |
| Training Location | Du Quoin or Pekin, Illinois |
| Additional Training | The franchisor may offer optional technician training for $15,000 per technician, which includes tools. Franchisees can also request additional on-site training for $350 per day per trainer, plus expenses. Periodic mandatory and optional refresher training programs are offered for franchisees and owners, potentially with a reasonable fee to offset costs, plus attendee travel and accommodation expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | typically defined by counties, states, or portions of states |
| Description | Franchisees are granted a protected area, typically defined by counties, states, or portions of states, based on factors like hail storm prevalence, service capacity, number of body shops, and technician availability. Franchisees must maintain an approved office within this territory. While the territory size remains constant if in good standing, it is not exclusive. The franchisor reserves the right to compete within the territory through "Key Accounts" or by managing PDR repairs during large weather events if the franchisee cannot adequately service demand. The franchisor and its affiliates may also use other distribution channels or different brands to offer similar products/services in the territory without compensation to the franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 2 additional terms of 5 years each |
| Renewal Fee | $5,000 |
| Renewal Conditions | To renew, the franchisee must notify the franchisor 9-15 months before expiration, not be in default, have complied with material terms, ensure the franchisor still supports a business in the territory, be current on all payments, upgrade the business to current standards, complete required training, sign the then-current successor franchise agreement, pay the renewal fee, and the franchisee and guarantors must sign a general release. The new agreement may have materially different terms. |
| Transfer Fee | $2,000 |
| Transfer Conditions | Most transfers require the transferee to meet new franchisee criteria, sign a guarantee, pay a transfer fee, satisfy all monetary obligations, and release the franchisor from claims. The transferor remains liable for pre-transfer obligations. If a change of control occurs, the transferee must sign the then-current franchise agreement, upgrade the business to current standards, and complete training. Certain minority transfers to employees or transfers from an individual to their wholly-owned entity may have fewer requirements. Franchisor consent is required for public/private offerings and security interests. |
| Termination for Cause | The franchisor can terminate immediately for reasons including failure to establish/commence operations, abandonment, felony conviction, unapproved transfers, misuse of confidential information, false reporting, repeated under-reporting of Gross Revenues (2% or more, twice), unsatisfied judgments, levies, foreclosure suits, failure to maintain licenses, insolvency, public misconduct, default under other agreements, multiple defaults within 6 months, bankruptcy (with conditions), or Anti-Terrorism Law violations. For other defaults, a 10-day cure period for non-payment and a 30-day cure period for other defaults generally applies, but subsequent similar defaults within 6 months can lead to immediate termination without cure. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the franchise term, the franchisee and its owners cannot be associated with any competing PDR, auto body repair, auto painting, or dent removal business, regardless of location (excluding passive ownership of less than 5% in a publicly traded company). For two years after transfer, expiration, or termination, they cannot compete in any such business within their former territory or any other System Business's territory. They are also prohibited from soliciting former customers, national accounts, franchisor suppliers/vendors for competitive purposes, or key/executive employees of any System Business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisees are required to participate personally in the direct operation of their Franchised Business. Generally, franchisees must operate for at least three years before delegating day-to-day management to a manager. The franchisee or their manager must successfully complete initial training. If a manager is hired later or replaced, they must complete training within 120 days of hire and sign a Confidentiality Agreement. Managers are not required to have an ownership interest. For legal entities, all owners must personally guarantee the Franchise Agreement obligations, including the non-compete clause. |
| Required Suppliers | Vehicle Hub estimating software |
| Supply Restrictions | Franchisees must operate in conformity with franchisor's methods, standards, and specifications. They may be required to purchase certain equipment, supplies, inventory, and services consistent with specifications or only from approved suppliers. The Operations Manual identifies these items. Software and hardware must comply with franchisor specifications. Specific insurance coverage types and minimum amounts are also required. |
| Franchisor Revenue from Suppliers | The franchisor did not receive any rebates from approved vendors based on franchisee purchases made in 2023, nor did its affiliates have any revenue from required purchases or leases of products or services by franchisees. The franchisor states that in the future, it may negotiate purchase terms with vendors and receive rebates or other material consideration, which it may retain or pass on to the Brand Development and Protection Fund or directly to franchisees, but is not required to do so. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor, or the Brand Protection and Development Fund, may offer to finance the costs of technician training for franchisees. The amount financed depends on the number of technicians. Interest rates are likely between 3-5% based on prime rates, with a typical repayment period of 24 months through monthly payments. The loan may be secured by the Franchised Business's revenue, and guarantors of the Franchise Agreement may be asked to guarantee the loan. Prepayment is permitted without penalty, and default may result in the total amount becoming immediately due. |
Dentsmart® Franchise Earnings — Item 19
Dentsmart® does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Dentsmart® Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Dentsmart® System Growth
Dentsmart® currently operates 13 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 1 | 2 | 15 |
| 2022 | 0 | 0 | 13 |
| 2023 | 1 | 0 | 13 |
Transfers: 0 | Closures: 3
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Rice Sullivan, LLC for year ending December 31st.
Dentsmart® Franchise — FAQ
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