Product category




ProSource Wholesale Franchise Costs $956K – $972K (+ 2024 Profits)

ProSource Wholesale is a franchise that specializes in supplying trade professionals with a wide range of products, such as flooring, cabinets, and countertops, through exclusive showrooms. Founded in 1991 and based in St. Louis, Missouri, it provides resources needed for both residential and commercial building projects.

What makes ProSource unique is its private showrooms that are dedicated to serving trade professionals with personalized services and wholesale prices. This approach allows professionals to access a broad selection of quality products efficiently, which helps them complete their projects effectively and affordably.

To support its franchisees, ProSource offers comprehensive marketing, training, and operational tools. This includes technology for project management and client communication, enabling franchisees to run their operations smoothly, satisfy their customers, and grow their businesses successfully.

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Initial investment

Type of ExpenditureAmount
Initial Franchise Fee$46,450
Furniture & Equipment$74,205
Merchandising Displays and Samples$101,839
Signage and Trade Dress / Graphics$10,634 – $18,834
Systems$46,295
Inventory$15,000
Remodel Expense$429,183
Real Estate Lease$38,500 – $46,500
Training (Your Costs)$8,220
Additional Funds (3 months)$116,000
Marketing$0
Wages and Withholding (Pre-Opening)$69,213
Total$956,000 – $972,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

You must pay an initial franchise fee of $46,450. This fee is non-refundable and is payable as follows: $34,450 in a lump sum upon signing the Franchise Agreement and the balance of $12,000 in twelve equal monthly payments of $1,000 each, starting the month after you open your ProSource Showroom.

Royalty Fee

You are required to pay a royalty fee of 3% of Gross Sales, with a minimum monthly royalty of $2,000. This fee is due monthly on the 15th day of the next month.

Marketing Fees

The exact amount for the Grand Opening Program is determined by ProSource but will not exceed $30,000. ProSource currently offers a $30,000 credit towards this fee. The minimum you will need to spend on marketing for the first year of operation is $25,400, with annual expenses varying based on personalized marketing plans.

Marketing Services Fee

This fee is $585 per month and covers creative and content development, marketing software licenses, program management, and Showroom reporting.

Local Showroom Pages Fee

The fee for maintaining local showroom pages is $279 per month, covering content management, Search Engine Optimization, Directory Management, and Reputation Management.

Digital Platforms Fee

The monthly fixed amount for digital platforms is $1,030, with additional variable amounts based on your Gross Sales. This fee covers the operational costs for the website, mobile applications, and other national technology platforms.

Initial Training Fee

Initial training for new franchisees is provided at no charge during the first six months after construction of your new Showroom commences. After this period, you must pay the current fee for any additional training.

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✅ Compare turnover, investment, profits and more

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How to apply

1. Research and Understand the ProSource Wholesale Concept

  • Identify your interest: Understand what ProSource Wholesale offers—mainly serving the needs of trade professionals by providing a wide selection of home improvement products at wholesale prices.
  • Market research: Evaluate the demand and competition in your desired area to ensure a ProSource franchise would be viable.

2. Review the Franchise Disclosure Document (FDD)

  • Obtain the FDD: Request the Franchise Disclosure Document from ProSource Wholesale, which provides essential information about the franchise.
  • Legal consultation: Have a franchise attorney review the FDD with you to understand your obligations, fees, and restrictions.

3. Secure Financing

  • Estimate total investment: Calculate the total cost required to open the franchise, including the franchise fee, inventory, equipment, and working capital.
  • Explore financing options: Look into financing through ProSource, banks, or other financial institutions that offer franchise loans.

4. Choose a Suitable Location

  • Site selection: Identify a location that aligns with market research findings, considering factors like accessibility, visibility, and proximity to target customers.

5. Complete Franchise Training

  • Attend training programs: Participate in all required training sessions provided by ProSource, which may include sales, management, product knowledge, and operational procedures.
  • Ongoing support: Take advantage of any additional training and support offered to maintain the franchise’s standards and competitiveness.

6. Set Up Your Store

  • Store layout and design: Follow ProSource’s guidelines for store setup, ensuring the space is optimally organized and branded according to franchise standards.
  • Inventory and supply chain management: Establish relationships with approved suppliers and set up an inventory system that supports efficient operations.

7. Marketing and Launch

  • Develop a marketing plan: Create a plan that incorporates both local and franchise-wide marketing strategies, utilizing tools and support provided by ProSource.
  • Soft opening: Consider opening your store for a limited time before the official launch to iron out operational kinks and gather initial customer feedback.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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