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- 2022 Franchise 500 Rank
#194 Ranked #261 last year
- Initial investment
$737K - $744K
- Units as of 2021
147 3.5% over 3 years
Here’s what you need to know if you’re interested in opening a ProSource Wholesale franchise.
ProSource Wholesale is a well-known brand in connecting products, projects, and trade professionals such as remodelers, architects, and builders. Offering a range of branded home improvement products at affordable prices, the company boasts significant buying power.
Founded in 1990 and franchising beginning in 1991, ProSource Wholesale continues to help franchisees create lasting business relationships and keep their local home improvement communities solid. The company maintains nearly 150 franchises all over the U.S. and Canada and continues to pursue new markets across North America.
Why You May Want to Start a ProSource Wholesale Franchise
As one of the region’s largest home improvement franchises, ProSource Wholesale offers a business model that does its best to be affordable to clients and lower retail hours and prices of installation services, among others.
Being one of the industry’s pioneering brands, ProSource Wholesale is managed by seasoned industry leaders. It uses a unique pricing system that it believes works for all involved, whether trade pros, clients, or franchisees. The company also relies on a sophisticated database for marketing and advertising.
There is no doubt that all of these contribute to the thriving brand. Still, franchisees speak highly of the support the company provides them in all aspects of operations, including recruitment, merchandising, technology, and business services. This support does not end when your location opens, as ProSource Wholesale continues to provide necessary support throughout the life of your franchise. If you’re looking for a franchisor that is as invested in you as you are in them, ProSource Wholesale could be a good match for you.
What Might Make a ProSource Wholesale Franchise a Good Choice?
With its good reputation and experience in the home improvement business that spans three decades, awards and acknowledgments are part of the ProSource Wholesale legacy. The brand is consistently ranked in Entrepreneur’s Franchise 500, which is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
To open a ProSource Wholesale franchise, you need to be prepared to invest financially. Costs will include investment in furniture, showroom construction, and pre-opening costs. Potential franchisees also need to have a company set liquid capital and a minimum net worth.
How Do You Open a ProSource Wholesale Franchise?
As you look into becoming a ProSource Wholesale franchisee, make sure you do your market research on the brand and your preferred site location. Look at similar companies and compare your potential customers to theirs. Ample market research will only help as you begin your site selection.
A potential franchisee will attend a company webinar and learn more about the prospective opportunity. You may also have the opportunity to tour a ProSource Wholesale showroom. Franchisees may follow up with a discovery day at the company’s headquarters in Earth City, Missouri to meet with other franchisees and company executives.
If a franchise is awarded, the franchise development team will work with you as you set up your new business and will provide ample pre-opening assistance. Besides the reputation for being a trendsetter in the industry and having a solid business model, ProSource Wholesale is known for being “a business for yourself but not by yourself.”
About ProSource Wholesale
- Franchising Since
- 1991 (31 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees in the following international regions: Canada
- # of Units
- 147 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a ProSource Wholesale franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $737,484 - $744,402
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $26,450 off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- ProSource Wholesale has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- Classroom Training
- 53 hours
- Additional Training
- Regional training
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingMarketing Planning & SupportSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where ProSource Wholesale landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where ProSource Wholesale ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to ProSource Wholesale.
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