ProSource Wholesale
Formerly known as Leading Edge Marketing
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).
- Rated STRONG with a risk score of 50/100. SBA loan default rate of 0.0% across 3 loans (below the industry average).
- System growing at 210% CAGR over 3 years with 151 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one ProSource Wholesale unit return on the cash you put in?
Unlevered ROIC · per unit
112%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 ProSource Wholesale units return on equity?
Equity IRR · 5-yr
22.2%
2.72× MOIC
Year-1 DSCR
4.13×
EBITDA ÷ debt service
Equity required
$49.7M
on $78.1M purchase
Total debt
$28.4M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 50 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ProSource Wholesale · FDD (2026) PDF