ProSource WholesaleFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A ProSource Wholesale franchise requires a total initial investment of $956K – $979K, including a $46K franchise fee and an ongoing 3.0% royalty[2]. Per the 2026 FDD, average unit revenue was $6.1M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $956K – $979K
- 42nd pct Service Resta…
- Avg gross sales
- $6.1M
- 28th pct Service Resta…
- Royalty
- 3.0%
- 1st pct Service Resta…
- Units
- 151
- 44th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants 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
Each dollar invested generates 6.3x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 1991. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $956K – $979K including a $46K franchise fee, 3.0% ongoing royalty.
- Average unit revenue of $6.1M/year (median $4.8M).
- Verdict A (Top Quintile) with a risk score of 20/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Leading Edge Marketing, Inc.
- Parent company
- CCA Global Partners, Inc.
- Incorporated in
- MO
- HQ
- 4301 Earth City Expressway, St. Louis, Missouri 63045-1334
- Auditor
- Armanino LLP
- Audited financials
- Franchisor revenue
- $189.3M
- vs $207.1M prior year
Overview
About
ProSource is a contractor supply distributor where franchisees operate wholesale showrooms selling building materials, lumber, plumbing, electrical, and HVAC products to professional contractors and builders. Daily operations include inventory management, customer relationship management, order fulfillment, and localized sales activities within a protected territory.
- CEO
- Eric M. Bernstein
- Headquarters
- MO
- Founded
- 1990
- FDD year
- 2026
- States available
- 39
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $46K | $46K |
| Working capital (3–6 mo) | $116K | $116K |
| Equipment, build-out, other | $793K | $816K |
| Total initial investment | $956K | $979K |
Source: ProSource Wholesale 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$735K
12.0% margin
Unlevered ROIC
68%
EBITDA / total invested capital
Payback
18 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $956K – $979K
- Near category avg vs category
- Liquid capital req'd
- $116K – $116K
- Near category avg vs category
- Franchise fee
- $46K – $46K
- Better than avg vs category
- Royalty
- 3.0%
- Gross Sales · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 3.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $46K |
| Renewal fee | $2K |
| Inventory (initial) | $15K – $15K |
| Total fee load | 3.3% of rev |
A 3.3% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $6.1M
- Per unit, per year
- Median gross sales
- $4.8M
- Item 19 type
- gross_sales
- Sample size
- 141 units
- vs category median 13 · large
- Range (low → high)
- $819K→$24.1M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
Revenue is 6.3x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Full-Service Restaurants averages
How ProSource Wholesale Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 151
- Opened
- 3
- Last reporting year
- Closed
- 1
- Turnover rate
- 0.7%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +1.4%
- Net unit change last year
- 3-yr CAGR
- +2.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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.
Available to sell in · Item 12
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $5.1M
- Median loan
- $515K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into ProSource Wholesale's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 7-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Slow-growth wholesale distribution franchise with undisclosed profitability data, historical regulatory issues, and substantial fixed cost obligations relative to average unit revenue.
Litigation (Item 3)
0 case reference(s): 1 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Armanino LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 20 / 100 rating
- 01MINORStagnant unit growth at 1.4% YoY indicates mature/declining system with minimal expansion momentum
- 02MEDNet income not disclosed in Item 19 prevents ROI validation; only gross revenue provided ($612k avg) creates opacity on actual profitability
- 03HIGH2003 Maryland securities litigation (Consent Order) suggests historical compliance issues with franchise disclosure laws
- 04MINORHigh initial investment ($955k-$979k) combined with $2,000 minimum monthly royalty ($24k/year floor) creates elevated break-even threshold
- 05MINORMinimum royalty obligation ($24k annually) represents 3.9% of average unit revenue even if sales fluctuate, creating cash flow risk
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 | 2 |
| Territory type | Zip codes |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Missouri |
| Litigation count | 1 |
View Item 3 litigation summary
0 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 54 hrs
- On-the-job training
- 120 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- RFMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: RFMS
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ProSource Wholesale · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ProSource Wholesale franchise?
The total investment to open a ProSource Wholesale franchise ranges from $956K – $979K, with an initial franchise fee of $46K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ProSource Wholesale franchise owners earn?
According to Item 19 of the ProSource Wholesale FDD, the average gross sales per unit is $6.1M. The median is $4.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is ProSource Wholesale's franchise failure rate?
SBA 7(a) loan charge-off data is not available for ProSource Wholesale (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 ProSource Wholesale franchise locations are there?
As of their most recent FDD filing, ProSource Wholesale has 151 total units in the United States, including 145 franchised units and 3 company-owned units. 3 new units were opened in the latest reporting year.
Is ProSource Wholesale a good franchise to buy?
FranchiseVerdict rates ProSource Wholesale as a A-grade franchise with a risk score of 20 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.
For franchisors
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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.