How to Finance a Clear Lakes Dental Franchise: Dentist Ownership
A Clear Lakes Dental franchise loan helps a licensed dentist pay for the franchise fee, office build-out, dental equipment and opening payroll needed to launch a general dentistry office under the Clear Lakes Dental name. Because the franchise is sold only to dentists and the investment is closer to a full dental start-up than a small retail franchise, lenders review both the clinician and the project in detail.
This article walks through the brand’s disclosed costs, its SBA directory status and how lenders typically approach a franchised dental office. US Medical Funding is not affiliated with, sponsored by or endorsed by Clear Lakes Dental; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, every loan is subject to approval, and nothing here is legal, tax, billing or compliance advice. Always work from the current Franchise Disclosure Document and review it with a franchise attorney and an accountant.
Clear Lakes Dental Franchise Loan at a Glance
- Franchisor: Clear Lakes Dental Franchise LLC, a Minnesota limited liability company
- Who can buy: the 2023 Franchise Disclosure Document states that franchises are offered only to professionally licensed dentists
- Initial franchise fee: $62,000 under the 2023 disclosure document
- Royalty: 7% of monthly gross revenue, plus a $2,000 monthly brand development fee (2023 disclosure document)
- Estimated initial investment: $550,300 to $1,505,200, excluding land or building purchases (2023 disclosure document)
- System size: the most recent disclosure document reports 6 franchised offices and 1 affiliate-owned office at the end of the fiscal year ending April 30, 2026
- Franchisor financing: none, according to Item 10 of the 2023 disclosure document
- SBA Franchise Directory: listed under code S8585, with one lease addendum note
What Is Clear Lakes Dental?
Clear Lakes Dental is a general dentistry brand based in Minnesota. According to the franchisor’s 2023 disclosure document, an affiliate has owned and operated Clear Lakes Dental offices in Minnesota since 2017, and the franchisor has offered franchises since 2021. Dr. David Park has served as president and chief executive officer of the franchisor since its formation.
The concept is unusual among dental brands because it is structured as a true franchise for dentist-owners rather than a group that employs dentists. The owner is the licensed dentist, and the franchisor provides the brand, systems, training and operating support. Recent recruiting materials from the company describe this as helping a dentist build the practice and then helping with operations afterward.
The system has grown mostly in Minnesota. The most recent disclosure document shows total outlets rising from 4 to 8 during the fiscal year ending April 30, 2025, then ending the following fiscal year at 7. The company’s recruiting materials also mention an office being built in Wisconsin.
Why Lenders See It as a Dental Start-Up First
Most lenders will underwrite a Clear Lakes Dental office much like any dental start-up, with the franchise layered on top. Dental lending is a well-understood category because the owner is a licensed professional and dentistry has steady demand. The franchise adds a royalty and brand fees, but it also adds a defined operating system and support, which some lenders view as a positive for a new owner. Our article on how lenders underwrite a dental cold start explains the general approach.
Clear Lakes Dental Franchise Costs
The figures below come from the franchisor’s 2023 Franchise Disclosure Document. Costs may have changed in later versions, so confirm each figure in the current document before you build a loan request.
Initial Franchise Fee
The 2023 disclosure document lists a $62,000 initial franchise fee, due when the franchise agreement is signed. It is non-refundable, and the franchisor does not finance any part of it.
Build-Out and Equipment
The two largest line items are construction and equipment. Leasehold improvements are estimated at $100,000 to $500,000, and fixtures, furnishings, equipment and décor at $200,000 to $600,000. Dental chairs, imaging, sterilization equipment and operatory cabinetry drive much of that range, along with the number of operatories you build.
Item 7 Line Items
The 2023 Item 7 table estimates the following:
- Initial franchise fee: $62,000
- Rent and security deposit (first 3 months): $21,000 to $36,000
- Construction, remodeling and leasehold improvements: $100,000 to $500,000
- Computer hardware and software: $6,000 to $12,000
- Security and surveillance: $7,000 to $10,000
- Fixtures, furnishings, equipment and décor: $200,000 to $600,000
- Initial supplies: $20,000 to $60,000
- Signage: $6,000 to $12,000
- Payroll (first 3 months): $100,000 to $150,000
- Out-of-pocket training expenses: $700 to $1,100
- Initial local advertising (first 3 months): $2,100
- Licenses and permits: $500 to $1,000
- Insurance: $1,000 to $5,000
- Miscellaneous opening costs: $4,000
- Additional funds (3 months): $20,000 to $50,000
Total Investment
The total estimate is $550,300 to $1,505,200, and it excludes buying land or a building. The wide range reflects the difference between converting an existing dental suite and building a larger office from a shell. A lender will want to see your specific budget, contractor bids and equipment quotes rather than the full range.
Ongoing Fees and How They Affect Your Loan
The 2023 disclosure document lists several recurring fees that a lender will deduct before estimating cash available for debt service:
- Royalty: 7% of monthly gross revenue
- Brand development fee: $2,000 per month
- Local advertising: a minimum of $700 per month, spent directly by the franchisee
- Systems and internal audit fee: $2,200 for up to 12 operatories, plus $200 per operatory beyond 12
- Renewal fee: $5,000
- Transfer fee: 10% of the gross transfer price excluding real property, or $2,500 when less than a controlling interest is transferred
A percentage royalty rises with production, while the fixed monthly fees apply even in slow months. Lenders usually model both in a conservative ramp-up so the loan payment is covered before the office reaches full patient volume.
Healthcare Considerations: Licensing and Payer Mix
Because the owner must be a licensed dentist, state dental board licensing is a starting point, not an obstacle to solve later. Each office also needs local permits, radiation equipment registration where required by the state, and compliance with infection control and patient privacy rules.
Payer mix shapes cash flow. Offices that accept dental insurance must credential each dentist with the plans they accept, and claim payments arrive after treatment. Credentialing delays can slow early revenue, which is why the Item 7 payroll and additional funds lines matter. Lenders will ask how you expect patients to pay, including insurance, cash and any in-house plans, and will look for enough reserves to cover the gap.
Franchisor Requirements for New Owners
The 2023 disclosure document states that franchises are sold only to dentists licensed and in good standing in the state where the office will operate. The franchisee locates the office within a defined search area, subject to franchisor approval, and must complete the franchisor’s training. The document also limits hiring associate dentists during the first six months of operations without approval, to the extent permitted by law.
Specific net worth or liquid capital minimums were not found in the franchisor’s materials reviewed for this article. Ask the franchisor directly and confirm any requirement in the current disclosure document.
Ways to Own a Clear Lakes Dental Office
Opening a New Office
Most franchisees open a new location. Lenders treat this as a dental practice start-up and focus on the dentist’s clinical experience, the site, the budget and the business plan.
Buying an Existing Office
The 2023 disclosure document shows that two affiliate-owned offices were sold to franchisees, and the newest document notes an affiliate office that reopened as a franchisee-owned office. A purchase gives a lender production history and patient counts to review. Transfers require franchisor approval, and the franchisor holds a right of first refusal. Our page on dental practice acquisition financing covers this path.
Adding Offices
Some dentist-owners eventually want more than one office. Lenders typically look for the first office to stabilize first. Our article on financing a second dental office describes how combined cash flow and management depth are evaluated.
Financing Options for a Clear Lakes Dental Franchise
SBA 7(a) Loans
SBA 7(a) loans can cover the franchise fee, build-out, equipment and opening working capital in one loan. The program maximum is currently $5 million, and program rules can change.
SBA 504 Loans
If you plan to buy the building for your office, SBA 504 financing may fit the real estate and long-lived equipment, while a separate loan covers franchise and start-up costs.
Conventional Practice Loans
Dentists with strong credit, liquidity and clinical history may qualify for conventional practice loans, which some lenders offer specifically for dental start-ups.
Equipment Financing
Chairs, imaging and sterilization equipment can be financed separately through dental equipment financing and leasing, keeping more cash available for payroll and marketing.
Working Capital
Insurance claim timing and early patient ramp-up can strain cash. Dental working capital financing can supplement the reserves in your start-up budget.
Seller Financing on Resales
When buying an existing office, a seller note may cover part of the price. Seller notes are typically subordinate to the primary loan, and loan programs may limit their terms.
SBA Loans for Clear Lakes Dental Franchisees
Clear Lakes Dental is listed on the SBA Franchise Directory under code S8585. The listing means the brand’s documents have been reviewed for SBA eligibility, so SBA lenders can consider the brand without a separate franchise affiliation review. It does not guarantee approval of any loan.
The directory includes one note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the brand’s Lease Addendum may not be executed. In plain terms, if you or an affiliated entity own the building and pledge it as collateral, that lease addendum should not be signed. Discuss this with your lender and attorney early if you plan to buy the property.
To compare loan amounts and payments, use our SBA loan calculator. Results are estimates for planning only.
How Lenders Evaluate a Clear Lakes Dental Deal
Credit and Financial History
Lenders review personal credit, tax returns and a personal financial statement. Student loan balances are common for dentists, and lenders consider how they affect personal cash flow.
Clinical Experience
The company’s recruiting materials mention owners who started soon after graduation, but lenders still weigh clinical experience, production history as an associate and any management experience.
Business Plan and Projections
Your plan should cover operatory count, staffing, local demographics, competition, payer mix and marketing. Lenders may review the Item 19 financial performance representations, which the most recent disclosure document includes, but they rely on your own projections. Review Items 3 and 4 for litigation and bankruptcy history.
Lease and Location
Lenders want a lease term that supports the loan and allows for build-out. Our article on dental office lease terms lenders require outlines common points to negotiate.
Real-World Scenarios
A recent graduate: A newly licensed dentist wants to open an office. The lender looks closely at clinical training, the franchisor’s support and a conservative ramp-up with adequate reserves.
An experienced associate: A dentist with years of associate production history opens a franchised office. The production history helps support projections.
A dentist buying the building: A franchisee buys a small commercial building for the office. The lender considers a real estate loan alongside the start-up loan and addresses the lease addendum note.
Common Mistakes to Avoid
- Relying on an older disclosure document without checking current fees
- Building a budget at the low end of the Item 7 range without contractor bids
- Underestimating insurance credentialing time
- Leaving no reserves after the build-out
- Signing a lease before the lender reviews it
For more pitfalls, see our article on dental practice loan mistakes.
Next Steps to Finance Your Clear Lakes Dental Franchise
Step 1: Request the current disclosure document. Review Items 5, 6, 7, 10, 17, 19 and 20.
Step 2: Confirm your licensing. Make sure your license is in good standing in the state where you will practice.
Step 3: Choose a site. Work within the franchisor’s search area and get a lease or letter of intent.
Step 4: Build a budget. Use contractor bids and equipment quotes.
Step 5: Prepare financial documents. Gather tax returns, a personal financial statement and your resume.
Step 6: Talk with a financing specialist. Compare SBA, conventional and equipment options.
Clear Lakes Dental Franchise Loan FAQs
How much does a Clear Lakes Dental franchise cost?
The 2023 disclosure document estimates $550,300 to $1,505,200, excluding land or building purchases. Confirm figures in the current document.
What is the Clear Lakes Dental franchise fee?
The 2023 disclosure document lists $62,000.
What royalty does Clear Lakes Dental charge?
The 2023 disclosure document lists 7% of monthly gross revenue, plus a $2,000 monthly brand development fee.
Do I need to be a dentist?
Yes. The disclosure document states that franchises are offered only to licensed dentists.
Is Clear Lakes Dental eligible for SBA loans?
Yes, it is listed on the SBA Franchise Directory under code S8585. Each loan is still subject to lender approval.
Does Clear Lakes Dental offer financing?
No. Item 10 of the 2023 disclosure document states that the franchisor does not provide or arrange financing.
How long is the franchise term?
The 2023 disclosure document lists a 10-year initial term, with renewal for 5-year periods if conditions are met.
Can I get a Clear Lakes Dental franchise loan as a new graduate?
Possibly. Lenders will weigh your training, credit, liquidity and the franchise’s support.
Can I finance equipment separately?
Yes, equipment financing or leasing can be used for chairs, imaging and other equipment.
What documents do I need for a Clear Lakes Dental franchise loan?
Typically tax returns, a personal financial statement, your license, a resume, a business plan, the disclosure document, the franchise agreement, a lease or letter of intent and contractor bids.
Final Thoughts
A Clear Lakes Dental franchise loan combines dental start-up financing with franchise fees and support. Dentists who confirm current costs, plan for insurance timing and keep reserves will be well prepared for lender review.
US Medical Funding helps dentists finance start-ups, acquisitions, equipment and real estate. Learn more about our dental practice financing.
