How Much Does a The Entrepreneur’s Source Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$114K – $126K
Franchise Fee
$75K
Royalty
25.0%
Ad Fund
$750 per month
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for The Entrepreneur’s Source is $75K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a The Entrepreneur’s Source franchise requires a total investment of $114K – $126K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $8K to $10K.
Ongoing Costs
Beyond the initial investment, The Entrepreneur’s Source franchisees pay ongoing fees. The royalty fee is 25.0% of gross sales (Percentage of sales/commissions collected on placements). The ad fund contribution is: $750 per month. There is also a technology fee of $150.
Net Worth & Liquid Capital Requirements
The Entrepreneur’s Source requires working capital of $8K – $10K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to The Entrepreneur’s Source's Item 19 financial performance representation:
Median gross sales: $118K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View The Entrepreneur’s Source?
SBA Loans Issued
58
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. The Entrepreneur’s Source has 58 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current The Entrepreneur’s Source franchise owners
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