The Entrepreneur’s Source Franchise Cost, Revenue & Review 2026
- Investment
- $114K – $134K
- Disclosed sales
- $112K
- gross sales, not profit
- SBA charge-off
- 40.0%
- on 37 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Entrepreneur's Source is a franchise-consulting business whose coaches help people explore business and franchise ownership. Franchisees run a home-based coaching and placement practice guiding candidates to franchises and earning referral fees.
FranchiseVerdict summary · 2026
A The Entrepreneur’s Source franchise requires a total initial investment of $114K – $134K, including a $75K franchise fee and an ongoing 25.0% royalty[2]. Per the 2026 FDD, average unit revenue was $112K[2]. SBA 7(a) loans show a 40.0% charge-off rate across 37 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $114K – $134K
- 40th pct Business Serv…
- Avg gross sales
- $112K
- 1st pct Business Serv…
- Royalty
- 25.0%
- 51st pct Business Serv…
- Units
- 262
- 60th pct Business Serv…
- SBA charge-off
- 40.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · 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 $114K – $134K including a $75K franchise fee, 25.0% ongoing royalty.
- RETURNSAverage unit revenue of $112K/year (median $88K).
- RISKVerdict D (Below average), verdict score 31/100 (higher is better). SBA loan charge-off rate of 40.0% across 37 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +26 franchised outlets in the latest year (55 opened, 28 closed); 9 signed but not yet open (Item 20).
- FLAG23 units terminated last reporting year (8.8% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- TES Franchising, LLC
- CEO title
- CEO
- Marissa Frois
- Incorporated in
- Connecticut
- HQ
- 464 Heritage Road, Suite 3, Southbury, Connecticut 06488
- Auditor
- Velez Hardy CPAs and Advisors
- Audited financials
- Franchisor revenue
- $34.8M
- vs $32.3M prior year
Affiliated brands
- AdviCoach Franchising
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Marissa Frois
- Headquarters
- Connecticut
- Founded
- 1997
- FDD year
- 2026
- States available
- 37
Can you afford it, and what does the money buy?
Entry cost is about typical for a business services franchise (near the category median).
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $75K | $75K | |
| Training Fee | $25K | $33K | |
| Travel And Living Expenses | $2K | $4K | |
| Insurance Premiums - Annual | $700 | $2K | |
| Equipment | $150 | $3K | |
| Initial Marketing | $1K | $2K | |
| MST Fees and Brand Building Investments | $3K | $3K | |
| Annual Conference Fee | $0 | $550 | |
| Annual Conference Travel and Living Expenses | $0 | $3K | |
| Additional Funds - 6 Months | $8K | $10K | |
| Total initial investment | $114K | $134K |
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
- $114K – $134K
- Top 40% of category vs category
- Liquid capital req'd
- $8K – $10K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Middle of category vs category
- Royalty
- 25.0%
- Set by a formula · typical 6–8%
- Ad fund
- Brand Building Investment: $750/month flat fee (may incre…
- Total fee load
- 25.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 25.0% |
| Technology fee | $150 |
| Training fee | $25K |
| Transfer fee | $19K |
| Renewal fee | $5K |
| Total fee load | 25.0% of rev |
At 25.0% total fee load, roughly $28K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 84% below the business services norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for The Entrepreneur’s Source until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$133K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one The Entrepreneur’s Source unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- $112K
- Per unit, per year
- Median gross sales
- $88K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 205 outlets
- vs category median 37 · large
- Range (low → high)
- $0→$540KNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
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 $112K/year in gross sales. Median is $88K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 25.0% — above the Business Services median of 9.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 77.0% CAGR over 3 years across 262 units — operators are staying and new ones are joining.
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 Business Services medians
How The Entrepreneur’s Source Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 262
- Opened
- 55
- Last reporting year
- Closed
- 28
- Terminated
- 23
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 4
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +77.0%
- Net unit change over 3 years
- 3-yr CAGR
- +77.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 23
- Not renewed
- 4
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 9
- 0.03 per open outlet · Item 20 Table 5
- Projected new
- 41
- Franchisor's next-year forecast
- Transfer rate
- 0.8%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 39 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.
Where the owners are · Item 20 owner list
190 current owners across 39 states.
- TX 22
- FL 15
- CA 12
- GA 12
- NC 10
- WA 10
- MI 9
- AZ 7
- PA 7
- IL 6
- TN 6
- MD 5
- +27 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- $4.9M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 40.0%
- on 37 loans · 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)
- 60.0%
- 5-yr charge-off
- 25.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 6
- Typical loan rate
- 7.2%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 6114
- Jobs supported
- 91
- 1.9 per loan
- Lender concentration
- 65%
- top lender's share
Borrower mix: 93% went to startups / new businesses, 7% to established operators
Top lenders financing The Entrepreneur’s Source franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for The Entrepreneur’s Source from SBA 7(a) FOIA data.
- Principal loss rate
- 13.8%
- Avg SBA guarantee
- 82%
- Avg interest rate
- 7.17%
- Avg chargeoff amount
- $114K
- Lender concentration
- 64.9%
- Job velocity
- 1.9 per $100K
- Jobs supported
- 91
Top SBA lendersTop lender holds 65% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 24 | N/A | N/A | |
| 2 | 5 | N/A | N/A | |
| 3 | 4 | N/A | N/A | |
| 4 | 1 | N/A | N/A | |
| 5 | 1 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 5 | 2 | 100.0% |
| FLFlorida | 4 | 1 | 50.0% |
| TXTexas | 4 | 0 | 0.0% |
| GAGeorgia | 3 | 0 | 0.0% |
| MIMichigan | 3 | 0 | 0.0% |
| NYNew York | 3 | 1 | 50.0% |
| INIndiana | 2 | 0 | 0.0% |
| NMNew Mexico | 2 | 0 | -- |
| AZArizona | 1 | 1 | 100.0% |
| ILIllinois | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 40.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 40.0% — 150% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
FTC consent agreement (2015) re: misrepresentation of Safe Harbor/TRUSTe participation, terminates 2035. Arbitration award of $102,341.50 against former franchisees Garth and Jessica Leech for unlawful termination (2021-2022).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Velez Hardy CPAs and Advisors
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 31 / 100 verdict
- 01MINOR2015 FTC consent order (misrepresentation) — concluded, runs to 2035
- 02MINOROne arbitration award to franchisor — concluded
- 03MINORNo bankruptcy/going-concern/distress
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 25.0% 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 | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 500,000 |
| Online sales rightsℹ | 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 | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Southbury, Connecticut (county of franchisor's principal place of business) |
| Jury trial waiver | Yes |
| Governing law | Connecticut |
| Litigation count | 2 |
View Item 3 litigation summary
FTC consent agreement (2015) re: misrepresentation of Safe Harbor/TRUSTe participation, terminates 2035. Arbitration award of $102,341.50 against former franchisees Garth and Jessica Leech for unlawful termination (2021-2022).
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 202 hrs
- Training location
- Southbury, Connecticut (Phase 1 on-site); remote/home office for remainder
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 4 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
- POS system
- Proprietary TES data management and intranet system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Proprietary TES data management and intranet system
Item 20 · call current owners
Franchisee Contacts
190 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Entrepreneur’s Source franchise?
The total investment to open a The Entrepreneur’s Source franchise ranges from $114K – $134K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Entrepreneur’s Source franchise owners earn?
According to Item 19 of the The Entrepreneur’s Source FDD, the average gross sales per unit is $112K. The median is $88K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns The Entrepreneur’s Source?
The Entrepreneur’s Source is franchised by TES Franchising, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the The Entrepreneur’s Source 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 The Entrepreneur’s Source FDD and qualifies whose outlets they describe.
What is The Entrepreneur’s Source's franchise failure rate?
Based on SBA 7(a) loan data, The Entrepreneur’s Source has a charge-off rate of 40.0% across 37 loans, meaning 40.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many The Entrepreneur’s Source franchise locations are there?
As of their most recent FDD filing, The Entrepreneur’s Source has 262 total units in the United States, including 262 franchised units and 0 company-owned units. 55 new units were opened in the latest reporting year.
Is The Entrepreneur’s Source a good franchise to buy?
FranchiseVerdict rates The Entrepreneur’s Source as a D-grade franchise with a verdict score of 31 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.