ProSource Wholesale is a membership-based showroom selling flooring, kitchen, and bath products to contractors and remodelers. The franchise offers a variety of building materials for trade professionals to meet their clients' needs.
Key Insights
- ProSource has a long-standing presence in the home improvement sector, evolving from its origins to become a comprehensive destination for flooring and cabinets. The business model focuses on providing a wide array of products and services tailored to both trade professionals and retail customers, establishing a solid foundation over time.
- The franchise operates as a wholesale distributor and retail showroom, offering an extensive selection of flooring, cabinetry, and related accessories. This dual approach allows for diverse customer engagement and a robust supply chain, ensuring availability and variety for all project needs.
- Operating within the resilient home renovation and building materials industry, ProSource caters to consistent demand driven by new construction and existing property upgrades. The market is characterized by ongoing consumer interest in enhancing living spaces, providing a stable environment for business growth.
Franchise Fee and Costs to Open
Exploring the financial picture of ProSource gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $945,785 - $961,985, along with a franchise fee of $46,450 - $46,450.
Financial Performance and Revenue
Yearly gross sales of $4,669,738 and estimated earnings of $653,764 - $840,553 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 1.8-3.8 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
ProSource provides comprehensive training. New franchisees receive initial training over a two-week period at ProSource headquarters. This program offers a deep dive into operational systems and brand standards. ProSource also offers ongoing support and resources designed to help franchisees launch and grow their businesses successfully. The franchise also recommends industry best practices for operational efficiency.
Legal Considerations
Legal considerations for a ProSource franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
A franchisee in the Home & Building Services sector, operating under a model similar to ProSource, might encounter considerations regarding the density of local competitors, each vying for customer attention and market share. The operational complexity of managing diverse service offerings, from installations to maintenance, can also present a learning curve. Furthermore, a reliance on consistent and timely supply chains for materials and parts is a factor to manage for seamless service delivery.
Franchise Datasheet
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