ProSource Wholesale Franchise
Cost, fees, owner earnings, closure rate and litigation for a ProSource Wholesale franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
ProSource Wholesale discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Gross sales data for 141 comparable showrooms (FY2025): average $6.1M, median $4.8M. Only 34% exceeded average sales. No net income projections provided.
What a ProSource Wholesale franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $46,450 | Item 5 — paid up front, before you open |
| Royalty | 3% of gross sales | Item 6 — charged on revenue, not profit |
| Total recurring fees | 3% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $955,599 – $978,799 | Item 7 — franchisor's own low/high estimate |
3% royalty (min $2,000/mo); $30k marketing credit; multiple recurring tech/marketing fees; $1,030/mo digital platforms.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
ProSource Wholesale system size and owner turnover
| Total outlets | 151 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 2 |
| Closure rate | 0.7% of outlets |
Minimal recent outlet closures/terminations; 2 transfers in FY2025; system stable/growing.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is ProSource Wholesale worth it? — how it compares to 436 similar franchises
| Ongoing fees | 3% of sales | lower than most (median 8%) |
| Startup cost | from $955,599 | pricier than 89% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.7% of outlets | about average |
| Disclosed lawsuits | 1 | about average |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a ProSource Wholesale
The franchisor's framing: Gross sales data for 141 comparable showrooms (FY2025): average $6.1M, median $4.8M. Only … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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ProSource Wholesale franchise — frequently asked
- How much does a ProSource Wholesale franchise cost?
- The FDD lists a total initial investment of about $955,599–$978,799, including a $46,450 initial franchise fee.
- How much do ProSource Wholesale franchise owners make?
- Gross sales data for 141 comparable showrooms (FY2025): average $6.1M, median $4.8M. Only 34% exceeded average sales. No net income projections provided. We grade this disclosure C for honesty.
- What are the ProSource Wholesale franchise fees?
- ProSource Wholesale's FDD discloses a $46,450 initial franchise fee, a 3% royalty on gross sales, for roughly 3% of gross sales in recurring fees before rent, labor, or debt service. 3% royalty (min $2,000/mo); $30k marketing credit; multiple recurring tech/marketing fees; $1,030/mo digital platforms.
- What is the ProSource Wholesale franchise profit margin?
- ProSource Wholesale does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross sales data for 141 comparable showrooms (FY2025): average $6.1M, median $4.8M. Only 34% exceeded average sales. No net income projections provided. Recurring fees alone take about 3% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the ProSource Wholesale franchise failure rate?
- Minimal recent outlet closures/terminations; 2 transfers in FY2025; system stable/growing.
- How many ProSource Wholesale locations are there?
- ProSource Wholesale's FDD reports 151 total outlets, with 1 that ceased operations in the most recent reporting year and 2 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does ProSource Wholesale have complaints or lawsuits?
- ProSource Wholesale discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a ProSource Wholesale franchise worth it?
- It depends on the numbers, not the pitch. ProSource Wholesale scores C on disclosure honesty, carries about 3% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Compare ProSource Wholesale to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with ProSource Wholesale or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.