PROSE (Area Representative Business)Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A PROSE (Area Representative Business) franchise requires a total initial investment of $55K – $487K, including a $45K franchise fee. The 2022 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $55K – $487K
- 13th pct Business Serv…
- Avg gross sales
- N/A
- 29th pct Business Serv…
- Royalty
- N/A
- Units
- 31
- 26th pct Business Serv…
- SBA default
- N/A
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $55K – $487K including a $45K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 61/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- PROSE Franchising, LLC
- Parent company
- PROSE Holding Company, LLC
- Incorporated in
- AZ
- HQ
- 4250 North Drinkwater Blvd., #300, Scottsdale, AZ 85251
- Auditor
- Henry+Horne
- Audited financials
- Franchisor revenue
- $669K
- vs $1.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2022
- Status as of 2022; may have been resolved in a later filing we don't yet have.
Overview
About
PROSE Area Representatives operate as independent sales and service distributors for personalized hair care products, managing customer acquisition, product consultation, fulfillment, and client retention within assigned (but unprotected) territories. Franchisees act as direct-to-consumer agents responsible for building their own customer base through relationship selling and ongoing product subscriptions.
- CEO
- Nate McFarland
- Headquarters
- AZ
- Founded
- 2017
- FDD year
- 2022
- States available
- 24
FDD Item 7 · 2022 filing · 10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial A/R Feenot refundable | $45K | $450K | |
| Demographic Analysis/Map of Territorynot refundable | $0 | $2K | |
| Travel and Living Expenses During Training (for all attendees)not refundable | $3K | $5K | |
| Furniture, Fixtures and Equipment (including Computer System)not refundable | $0 | $3K | |
| Signage & Business Cardsnot refundable | $100 | $1K | |
| Business Licensesnot refundable | $100 | $2K | |
| Insurancenot refundable | $2K | $3K | |
| Vehiclenot refundable | $0 | $3K | |
| Advertisingnot refundable | $3K | $4K | |
| Additional Funds - 3 Monthsnot refundable | $3K | $15K | |
| Total initial investment | $55K | $487K |
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
- $55K – $487K
- Better than avg vs category
- Liquid capital req'd
- $3K – $15K
- Better than avg vs category
- Franchise fee
- $45K – $450K
- Better than avg vs category
- Royalty
- -n/d
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $750 |
| Transfer fee | $4K |
| Renewal fee | $4K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Business Services averages
How PROSE (Area Representative Business) Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +11.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 37
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
PROSE presents significant transparency and verification risks due to missing financial disclosures, unknown royalties, tiny unit base, and lack of territorial protection, making ROI claims impossible to validate.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Henry+Horne⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 61 / 100 rating
- 01MEDFinancial performance metrics (revenue, net income) completely undisclosed — unable to validate ROI claims or profitability benchmarks
- 02MINORRoyalty structure unknown — hidden ongoing costs could significantly impact net returns on $55k-$487k investment
- 03MINOROnly 31 units with unknown growth trajectory — small, potentially stagnant system raises scalability and franchisor viability questions
- 04MINORZero territory protection — franchisees face direct internal competition and cannibalization risk within same geographic markets
- 05MINORNo Item 19 financial performance representations — franchisor unwilling to disclose earnings data, suggesting weak unit economics
- 06MINOR$0 franchise fee with wide investment range ($55k-$487k) suggests variable startup costs and unclear cost structure breakdown
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Specific geographic territory |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 55 hrs
- On-the-job training
- 66 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
33 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
PROSE (Area Representative Business) · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a PROSE (Area Representative Business) franchise?
The total investment to open a PROSE (Area Representative Business) franchise ranges from $55K – $487K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do PROSE (Area Representative Business) franchise owners earn?
PROSE (Area Representative Business) 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 PROSE (Area Representative Business)'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for PROSE (Area Representative Business) (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 PROSE (Area Representative Business) franchise locations are there?
As of their most recent FDD filing, PROSE (Area Representative Business) has 31 total units in the United States, including 27 franchised units and 1 company-owned units.
Is PROSE (Area Representative Business) a good franchise to buy?
FranchiseVerdict rates PROSE (Area Representative Business) as a B-grade franchise with a risk score of 61 out of 100, 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.
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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.