Quick Verdict · who it fits
ProSource fits first-time franchise buyers looking for a mid-scale retail concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$956K - $979K
Franchise fee (Item 5)
$46K
Royalty (Item 6)
3%
System size (Item 20)
147 +3
Agreement term
10 yrs
Years in business
35+ yrs
Company-owned units
3
Item 3 litigation
1 suit
Model ProSource's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
✓Financing available✓Exclusive territory✓Semi-absentee eligible✓No bankruptcy disclosed•1 Item 3 case
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 3% on gross sales.
PROJECTED ANNUAL SALES$6,120,000
$100k$11.1M
Royalty (3%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
151
Total units open
2
Units opened last year
fiscal year ending September 30, 2025
1
Units closed last year
+2
Net unit growth
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
How ProSource ranks against 118 Retail peers we've analyzed.
Initial investment
97th pct · of 118 peers
Franchise fee
62nd pct · of 118 peers
System size
70th pct · of 118 peers
Retail industry averages
Avg investment
$247K - $707K
Avg franchise fee
$37K
Avg system size
238
Franchises analyzed
118
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| ProSource | Disclosed | $46K | $956K - $979K | 3% | 147 |
| 1 800 Flowers.comSimilar price | Disclosed | $30K | $259K - $933K | 6% | 37 |
| 7-ElevenBiggest system | Disclosed | — | $163K - $1.7M | 45–56% | 7,229 |
| Byrider Franchising PartnersTop-rated in category | Disclosed | $60K | $947K - $1.6M | 1–2.5% | 81 |
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Free explainers to go deeper before you sign.
Brand Analysis
The '$0 franchise fee' is the bottom of a range, not the fee. 7-Eleven's 2026 FDD prices the Franchise Fee at $0 to $1,100,000 per store, and the ongoing 7-Eleven Charge is not just a royalty: Item 6 says it is also your lease of the store and equipment. Here is the full cost stack, line by line.
Brand Analysis
Ace Hardware Corporation is a retailer-owned cooperative, not a conventional franchisor. It counted 5,250 cooperative locations in the United States at the end of 2025, members buy stock rather than paying a royalty, and some states still deem those member-owned stores franchises.
Investment Guide
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ProSource requires a $46,450 initial franchise fee and a total initial investment range of $955,599–$978,799, per the most recent FDD on file.
ProSource is franchised by LEADING EDGE MARKETING, INC., the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
Yes. ProSource discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.
Franchisees pay a royalty of 3% on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, ProSource has 147 total locations, with 3 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Yes. ProSource grants franchisees an exclusive territory under Item 12 of the FDD. Note that exclusive territories often carve out online sales, alternative distribution channels, and non-traditional venues — review the full Item 12 language before signing.
Per the FDD, ProSource discloses an initial agreement term of 10 years. Review Items 10 and 17 for the full renewal and termination provisions.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt