2026 FDD Issued Jan 23, 2026 Minnesota Commerce (CARDS) Checked Oct 22, 2026
ProSource Wholesale Franchise Cost (2026)
A ProSource Wholesale franchise costs an estimated $955,599 – $978,799 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $46,450 initial franchise fee (Item 5) and covers this format: Wholesale Trade Showroom. Item 6 lists royalty fee: 3% of Gross Sales, subject to the conditions below.
- Total investment
- $956K – $979KItem 7 source and qualifications
- Franchise fee
- $46.5KItem 5 source and terms
- Royalty
- 3% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 0% – 0.25% of Gross SalesItem 6 conditions and fee bases apply
- Units (2025)
- 150Item 20 source and scope
- Franchise exit rate
- 0.7% / yrCalculated 3-year average; definition and source
What stands out about ProSource Wholesale
Remodel expense is the largest line in the Item 7 showroom estimate. Furniture, merchandising displays and systems add separate startup costs. The FDD places a zero marketing charge in that initial table because it currently credits the Grand Opening Program; the required local spending after opening is described under Item 6.
The royalty in Item 6 has a monthly floor and splits payment timing between kitchen-and-bath sales and other products. Digital Platforms charges a fixed amount plus a tiered sales-based component. Marketing services and local showroom pages are already included in the required marketing budget, so adding those charges again to that budget would double count them.
Item 19 reports $4,764,828 as the median for comparable franchised showrooms that were open long enough to qualify. Newer and small-format showrooms were left out of that table. Item 20 tracks 147 U.S. franchised showrooms at the end of 2025; its separate systemwide summary includes a Canadian location.
What are the initial franchise fees and financial requirements for ProSource Wholesale?
Item 5 lists an initial franchise fee of $46,450 for ProSource Wholesale. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5, PDF p. 11, sets the $46,450 initial franchise fee. Subject to credit approval, $34,450 is paid on signing and $12,000 in twelve $1,000 installments after opening; otherwise the whole fee is due on signing. If no site is approved within 135 days and the franchisor terminates the agreement, $10,500 of the fee is refundable. Other circumstances do not create that refund.
Source: ProSource Wholesale 2026 FDD, Item 5, PDF p. 11.
This record lists no minimum net worth or liquid-capital requirement for ProSource Wholesale, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a ProSource Wholesale franchise? (Item 7)
Source: ProSource Wholesale 2026 FDD, Item 7, PDF p. 18.
Item 7 of ProSource Wholesale’s 2026 Franchise Disclosure Document estimates the total cost to open one wholesale trade showroom at $955,599 – $978,799. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $46,450 | $46,450 |
| Furniture & Equipment | $79,205 | $79,205 |
| Merchandising displays and Samples | $67,052 | $67,052 |
| Signage and Trade Dress / Graphics | $11,609 | $19,809 |
| Systems | $47,210 | $47,210 |
| Inventory | $15,000 | $15,000 |
| Remodel Expense | $442,680 | $442,680 |
| Real Estate Lease | $42,000 | $57,000 |
| Training (Your costs) | $19,180 | $19,180 |
| Additional Funds (3 months) | $116,000 | $116,000 |
| Marketing | $0 | $0 |
| Wages and withholding (pre-opening) | $69,213 | $69,213 |
| Total | $955,599 | $978,799 |
For comparison, the median high-end investment among 12 home services records without a source-review hold is $283,275.
Item 7 (PDF pages 18-24) details startup costs for a commercial trade showroom. Showroom leasehold improvements, merchandising display racks, computer ordering infrastructure, and operating reserves represent major capital commitments.
What ongoing royalties and fees does ProSource Wholesale charge? (Item 6)
Source: ProSource Wholesale 2026 FDD, Item 6, PDF p. 12.
Item 6 of ProSource Wholesale’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty Fee | 3% of Gross Sales | Every period | 3% of Gross Sales, with a $2,000 monthly minimum. Kitchen-and-bath sales are paid at 3% monthly; other sales are paid at 2% monthly and 1% after the fiscal year. Gross Sales exclude taxes, refunds, and specified referral fees. (Item 6, PDF p. 12) |
| Marketing | Varies | Every period | Grand Opening Program up to $30,000 is currently offset by a $30,000 franchisor credit. At least $25,400 must be spent in the rest of the first year. Later personalized annual plans vary; service and showroom-page fees are included in total marketing expenses. (Item 6, PDF p. 12) |
| Marketing Services Fee | $585 per month | Every period | $585 per month for creative work, marketing software and campaign management, included in the total marketing expense. (Item 6, PDF p. 13) |
| Local Showroom Pages Fee | $379 per month | Every period | $379 per month for local web content and related management, included in total marketing expense. (Item 6, PDF p. 13) |
| System Branding Fund | 0% – 0.25% of Gross Sales | When it applies | Not established as of the FDD issue date. If implemented during the initial term, contributions cannot exceed 0.25% of Gross Sales. (Item 6, PDF p. 13) |
| Cooperative Marketing Payments | Varies | When it applies | No cooperative has been established; if one is formed, the owner must share approved regional program costs pro rata. (Item 6, PDF p. 13) |
| Digital Platforms Fee | Varies | Every period | Base is $1,030 per month for the first showroom and $780 for each additional showroom, plus a tiered variable amount on annual Gross Sales above $1.5 million. Qualifying new showrooms receive a temporary 67% base discount, currently reducing the first base to $339.90. (Item 6, PDF p. 14) |
| CRM maestro Platform Fee | Varies | Every period | Full license currently $95 per user per month; limited license $29 per user per month. Total depends on user and license mix. (Item 6, PDF p. 14) |
| Site inspection fees | Varies | When it applies | First site inspection and grand-opening visit are free; later compliance or site visits may be billed at cost. (Item 6, PDF p. 14) |
| Initial Training and Recruiting Support Fee | Varies | When it applies | Initial training is free during the first six months after construction begins; later training uses the then-current fee. Travel, living and compensation costs for attendees are separate. (Item 6, PDF p. 14) |
| Annual Training and Recruiting Support Fee | $470 per month | When it applies | $470 monthly per showroom, or $5,640 annually, if the owner joins the annual training program; owners may opt out in January. Later a la carte training may cost more. (Item 6, PDF p. 15) |
| Additional Training for Under-Performance | Varies | When it applies | Special or mandatory training fees and any required on-site employee costs, travel and lodging when sales or kitchen-and-bath performance falls short. (Item 6, PDF p. 15) |
| Conventions | Varies | Every period | Mandatory convention fee is currently $995 per person from the first showroom, $895 from a second, and $795 from each additional showroom. Required regional meeting fee is $300 per person; travel is separate. (Item 6, PDF p. 15) |
| Audit Fee | Varies | When it applies | Audit cost and interest at the lesser of 18% annually or the legal maximum after specified underpayments, inadequate records, late sales reports or rescheduled audits. (Item 6, PDF p. 15) |
| RFMS Computer Service Fee | Varies | Every period | Currently $553 to $1,368 monthly for up to eight users, more for additional users. Includes B2B software and hosting. (Item 6, PDF p. 16) |
| Cyncly Design Live Yearly License Fee | $1,640 per year | Every period | $1,640 per license annually; one license is needed to open a showroom. (Item 6, PDF p. 16) |
| Gateway Software License Fee | $1,188 per year | Every period | $1,188 annually, payable in two $594 installments. (Item 6, PDF p. 16) |
| On Going Sample Fees | Varies | Every period | Display updates and new samples, not to exceed $10,000 per year in the stated table. (Item 6, PDF p. 16) |
| Resale Support Fee | $4,000 | When it applies | $4,000 if the owner requests franchisor resale-support services. (Item 6, PDF p. 16) |
| Franchise Transfer Fee | Varies | When it applies | $10,000 or more to cover transfer costs for an existing franchisee buyer; $46,450 or more for a new operator buyer. (Item 6, PDF p. 16) |
| Renewal Fee | Varies | When it applies | $2,000 per renewal plus franchisor costs and expenses. (Item 6, PDF p. 16) |
| Late Charge Fee | $50 | When it applies | $50 per day that a required sales report, royalty payment, or financial statement is late. (Item 6, PDF p. 16) |
| Interest | Varies | When it applies | Lesser of 18% annually or the maximum legal rate on overdue payments. (Item 6, PDF p. 16) |
| ProSource Cooperative Membership Fee | Varies | When it applies | Optional buyer cooperative: $2,499 membership, $1 stock subscription, and $250 administration fee for each additional showroom purchasing through the cooperative. (Item 6, PDF p. 16) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
ProSource Wholesale startup investment and modeled fees over 10 years
The royalty has a $2,000 monthly minimum and different payment timing for kitchen-and-bath sales. Mandatory local marketing spending includes some monthly service charges, while Digital Platforms uses a tiered annual-sales charge and some technology fees depend on user count. Annual sales alone cannot determine a complete fee bill without double counting. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: ProSource Wholesale franchised outlet history
Source: ProSource Wholesale 2026 FDD, Item 20, PDF p. 52.
Item 20 Table 3 reports 147 franchised outlets at the end of 2025. The company-owned table reports a further 3 outlets. Our calculated average annual franchised exit rate is 0.7% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 145 | 1 | 2 | 144 | 1.4% |
| 2024 | 144 | 1 | 0 | 145 | 0% |
| 2025 | 145 | 3 | 1 | 147 | 0.7% |
Franchised units went from 145 to 147 over 3 years (+2).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare ProSource Wholesale’s exit rate with other brands.
2 units changed owners in 2025.
Item 20 Table 3 on PDF p. 52 lists U.S. franchised showrooms: 145 at the beginning of fiscal 2023 and 147 at the end of fiscal 2025. Table 1 includes one additional Canadian showroom, so its systemwide franchised totals are one higher. The reported years end September 30, not December 31; Table 3 movements reconcile in each year.
How much do ProSource Wholesale franchise owners make? (Item 19)
Source: ProSource Wholesale 2026 FDD, Item 19, PDF p. 46.
Item 19 of the 2026 FDD reports median Sales for Comparable Showrooms of $4,764,828 (FY2025, 141 franchised comparable showrooms open for 24 consecutive months before the end of fiscal 2025, excluding small-format showrooms). Besides sales, ProSource Wholesale’s Item 19 reports “Average Gross Margin” as a percentage. A margin is the share of sales left after the costs the franchisor counts in it, not what an owner takes home. The figure follows the franchisor’s own definition in Item 19, which decides which costs are deducted and whether an owner’s salary is one of them.
See every ProSource Wholesale Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret ProSource Wholesale’s Item 19 figures and sample limits.
How long is the ProSource Wholesale franchise agreement term?
Source: ProSource Wholesale 2026 FDD, Item 17, PDF p. 43.
The standard ProSource Wholesale franchise agreement runs 10 years, with renewal terms of 10 years.
10-year initial term with options to add two additional consecutive terms of 10 years each (up to 20 additional years) for franchisees in good standing.
How long does it take to open a ProSource Wholesale franchise? (Item 11)
Source: ProSource Wholesale 2026 FDD, Item 11, PDF p. 32.
Item 11 of the 2026 FDD states the time from signing the franchise agreement or the first payment, whichever is earlier to opening: 6 to 12 months.
Franchises with a similar investment range
These published records are selected by proximity to ProSource Wholesale’s $955,599 low-end Item 7 investment, starting with Home Services. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
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- Tim Hortons $988K – $3.31M Restaurants & Food
- The Goddard School $1M – $1.5M Education & Tutoring
Compare other home services franchises
Frequently Asked Questions about ProSource Wholesale
- How much does it cost to open a ProSource Wholesale showroom?
- Item 7 of the 2026 FDD estimates $955,599 – $978,799 for a showroom. Remodeling is the largest listed cost, with merchandising displays and samples on a separate line. The $46,450 initial fee from Item 5 is included.
- What royalty and marketing fees does ProSource charge?
- Item 6 lists a 3% of Gross Sales royalty subject to a monthly minimum. Required local marketing and the technology platform fees have separate terms in the fee table.
- What annual sales does ProSource Wholesale disclose?
- Item 19 of the 2026 FDD reports $4,764,828 as the median annual sales of 141 comparable franchised showrooms that had operated for 24 consecutive months. These are showroom sales, not owner profit.
- How long is the ProSource franchise agreement?
- The initial franchise agreement term is 10 years, with an option to renew for a successor 10-year term upon satisfying renewal conditions and paying the renewal fee.
Sources
Leading Edge Marketing, Inc. Franchise Disclosure Document, issued January 23, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 11
- Item 6: cited PDF p. 12
- Item 7: cited PDF p. 18
- Item 19: cited PDF p. 45
- Item 20: cited PDF p. 52
- Agreement term (Item 17): cited PDF p. 43
Page references for ProSource Wholesale use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- October 22, 2026: Source check completed against the recorded FDD.
- October 22, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued January 23, 2026).