ProSource Wholesale Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
ProSource Wholesale is a members-only wholesale showroom franchise selling flooring, kitchen, and bath products to trade professionals and their clients. Franchisees run a showroom-and-warehouse serving contractors, designers, and remodelers in a territory.
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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $956K – $979K
- 88th pct Home Services
- Avg gross sales
- $6.1M
- 36th pct Home Services
- Royalty
- 3.0%
- 1st pct Home Services
- Units
- 151
- 69th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $956K – $979K including a $46K franchise fee, 3.0% ongoing royalty.
- RETURNSAverage unit revenue of $6.1M/year (median $4.8M).
- RISKVerdict A (Strongest tier), verdict score 84/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Leading Edge Marketing, Inc. d/b/a ProSource Wholesale
- Parent company
- CCA Global Partners, Inc.
- Predecessor
- PS Floorcoverings, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Director
- Eric M. Bernstein
- Incorporated in
- Missouri
- 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
- CEO
- Eric M. Bernstein
- Headquarters
- MO
- Founded
- 1990
- FDD year
- 2026
- States available
- 39
Can you afford it, and what does the money buy?
Entry cost runs 330% above the typical home services franchise.
Source: FDD 2026 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $956K – $979K
- Bottom third — review vs category
- Liquid capital req'd
- $116K – $116K
- Bottom third — review vs category
- Franchise fee
- $46K – $46K
- Top 40% of category 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.
What do units actually make?
Average unit sales run 394% above the home services norm.
Source: FDD 2026 · Item 19
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
$796K
13.0% margin
Unlevered ROIC
74%
EBITDA / total invested capital
Payback
16 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one ProSource Wholesale unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
74%
Above the 30–60% band. Verify revenue is per-unit average
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 ProSource Wholesale units return on equity?
Equity IRR · 5-yr
24.6%
3.01× MOIC
Year-1 DSCR
3.45×
EBITDA ÷ debt service
Equity required
$20.7M
on $36.7M purchase
Total debt
$16.0M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $6.1M
- Per unit, per year
- Median gross sales
- $4.8M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Actual Sales Table (Gross Sales) of Comparable Showrooms — not net income
- Sample size
- 141
- vs category median 32 · 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
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 321 Home Services brands
Revenue is 6.3x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $6.1M/year in gross sales. Median is $4.8M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 6.3x.
Fee burden
Total ongoing fee load of 3.3% — below the Home Services average of 8.9%.
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How ProSource Wholesale Compares
Is the system healthy?
Source: FDD 2026 · Item 20
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
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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
- N/A
- limited sample (8 loans) — rate not shown below 10
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
- 8
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Established wholesale franchisor (since 1991, 151 units) with only one old regulatory matter (2003 Maryland consent order) and strong parent-level financials ($83.1M net worth, positive net income, audited). Item 19 disclosed with $6.1M average gross sales, near-zero turnover. The single stale 2003 matter is negligible.
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)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 84 / 100 verdict
- 01MEDOnly one stale regulatory matter from 2003 (MD consent order)
- 02MINORfinancials_are_parent_level=true; parent net worth $83.1M, net income $693,429
- 03MEDAudited, item19_disclosed=true, avg gross sales $6.1M, turnover 0.68%
- 04MINORNo bankruptcy, no going-concern, no distress
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 3.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 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 Item 19 in the ProSource Wholesale FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the ProSource Wholesale FDD and qualifies whose outlets they describe.
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 148 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 verdict score of 84 out of 100 (higher is better), 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.