The Entrepreneur’s Source Franchise in 2024: Costs, Fee & FDD
Explore The Entrepreneur’s Source franchise opportunity. A trusted leader in business coaching with nearly 40 years of experience. Discover if this low-overhead, high-support model is the right investment to fuel your entrepreneurial journey.
Table of Contents:
The Entrepreneur’s Source (TES) is a franchise founded by Terry Powell over 35 years ago with a mission to guide aspiring entrepreneurs through the journey of business ownership. Powell’s vision was to create a unique coaching system that helps people transition from traditional employment to self-sufficiency through entrepreneurship, making TES a pioneer in the career transition and business coaching industry.
TES’s core service is business coaching, where franchisees work with clients to explore franchise ownership, self-employment, and other career alternatives. TES also provides ancillary services like educational webinars, workshops, and self-assessment tools, catering primarily to individuals seeking greater control over their careers, often professionals who want to pivot from corporate life to business ownership.
TES has grown to encompass a wide network of franchise coaches across the United States and Canada, with hundreds of franchisees operating in local markets. The franchise’s reach is supported by a robust online platform that attracts thousands of clients, making TES a leading force in the franchise coaching sector.
Franchisees benefit from a comprehensive support system, including extensive training on the TES coaching methodology, client acquisition strategies, and ongoing mentoring from experienced coaches. TES also offers marketing resources and access to a proprietary network of franchise opportunities, ensuring franchisees have the tools and support needed to succeed as business coaches.
The Entrepreneur’s Source Franchise Insights
- Founded in 1984, TES has nearly four decades of experience, with 186 franchised locations across the U.S., demonstrating its stable presence in the business coaching sector.
- With a vast network of franchise coaches across the U.S. and Canada, TES provides franchisees access to a well-developed client base and proprietary tools, making it easier to grow a successful coaching business.
- TES has been offering franchises since 1997 and includes Item 19 financial disclosures in its FDD, providing prospective franchisees with transparency into potential earnings and financial performance.
- TES offers a unique income structure for franchisees, who earn revenue from client coaching fees and also receive compensation when clients invest in franchises or other business opportunities.
The Entrepreneur’s Source Franchise Key indicators
Growth YOY (%)
26%
vs industry 0%
Total U.S. Franchised Units
186
3-Year Failure Rate
18%
vs industry 16%
Sales-to-Investment ratio
1:1
How much does it cost to open a The Entrepreneur’s Source franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a The Entrepreneur’s Source franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a The Entrepreneur’s Source franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a The Entrepreneur’s Source below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $75,000 | $75,000 |
| Training Fee | $25,000 | $25,000 |
| Travel And Living Expenses | $2,000 | $3,500 |
| Insurance Premiums – Annual | $700 | $1,500 |
| Equipment | $150 | $2,500 |
| Initial Marketing | $1,000 | $2,000 |
| MST Fees and Brand Building Investments | $3,000 | $3,000 |
| Conference Fee | $0 | $450 |
| Conference Travel and Living Expenses | $0 | $3,000 |
| Additional Funds – 6 Months | $7,500 | $10,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $114,350 | $125,950 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a The Entrepreneur’s Source franchise, the required capital involves both the initial investment costs and a net worth requirement set by The Entrepreneur’s Source. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $114,350 to $125,950. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Based on industry standards, similar franchises in the business and professional services sector often require liquid assets of approximately $20,000 to $50,000 to ensure franchisees have sufficient cash for ongoing operational expenses. This is an estimate, as specific liquid asset requirements for TES aren’t provided here.
- Net Worth For franchises in this sector, a typical net worth requirement could range from $100,000 to $200,000, providing a financial buffer to support business growth and sustainability.
How much does a The Entrepreneur’s Source franchise owner make?
Calculating the salary of a The Entrepreneur’s Source franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a The Entrepreneur’s Source franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
The Entrepreneur’s Source Revenue & Gross Sales
Based on the most recent data, The Entrepreneur’s Source franchises achieved a median gross sales of $117,975. This strong financial performance underscores the brand’s robust consumer demand and potential for lucrative returns for franchisees.
Which key factors impact the average revenue performance of The Entrepreneur’s Source franchisees?
The Entrepreneur’s Source likely saw strong franchisee performance due to an increased interest in entrepreneurship and career transition, particularly among professionals seeking alternatives to traditional employment. Economic shifts and the ongoing growth of the franchise sector have driven more individuals to explore self-employment, making TES’s coaching services highly relevant. Additionally, TES’s established network and proven coaching model, along with its support for franchisees in securing clients, have helped maintain stable revenue streams. Enhanced marketing efforts and TES’s reputation as a leader in career transition coaching may have also contributed to attracting new clients and boosting overall franchisee performance.
The Entrepreneur’s Source Franchise Operational Costs
Operational costs for a franchise like The Entrepreneur’s Source are the ongoing expenses required to run the day-to-day operations of the business. These costs are essential for maintaining the business’s functionality and ensuring smooth operations. For a The Entrepreneur’s Source franchise, operational costs include:
- Marketing and Advertising Costs for local advertising, digital marketing, and outreach efforts to attract and retain clients.
- Technology and Software Expenses for client management systems, CRM software, and any proprietary platforms used to track and manage client interactions.
- Professional Development Fees for continuous education, certifications, or training programs that help improve coaching skills and stay updated on industry trends.
- Office and Supplies If operating from a home office, this may include costs for office supplies, internet, and phone services; however, renting a small office space would add further overhead.
- Travel and Networking Costs for attending industry events, networking opportunities, and meeting with potential clients, which can help build a strong client base.
Careful planning and budgeting for these operational costs are crucial for the financial health and success of your The Entrepreneur’s Source franchise.
The Entrepreneur’s Source Franchise Fees
When considering a The Entrepreneur’s Source (TES) franchise, it’s essential to be aware of ongoing fees that impact monthly operational expenses. Here are some relevant fees:
- Brand Building Investment $750 per month, dedicated to the system-wide Brand Building Fund to support TES brand promotion and awareness. This fee may increase to a maximum of $950 with 90 days’ notice.
- Marketing A minimum of $300 per month for local marketing and advertising efforts to attract clients. This can include digital or print ads, networking events, business development, and other promotional activities.
There may also be additional fees depending on specific circumstances or franchise requirements outlined in the franchise agreement.
The Entrepreneur’s Source Franchise Earnings
Based on the most recent data, a franchisee with The Entrepreneur’s Source can expect median gross sales around $117,975. For an owner-operator, this translates to estimated earnings of approximately $21,236. This revenue figure highlights a manageable yet modest income potential that may appeal to franchisees looking for steady, smaller-scale operations rather than high-volume sales.
The earnings in this model reflect the lower overhead costs typical in a consulting or coaching franchise, where significant expenses like inventory or large retail spaces aren’t required. Earnings will vary based on client acquisition efforts, market demand, and operational efficiency. The Entrepreneur’s Source franchise could be an attractive option for those who value flexibility, personal interactions, and the potential to grow client relationships over time.
How to Open a The Entrepreneur’s Source Franchise
To become a franchisee with The Entrepreneur’s Source, here’s a step-by-step overview of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Exploratory Call TES’s franchise team will arrange an initial call to discuss the franchise opportunity, answer any questions, and assess if this could be a mutual fit. This is a chance for you to learn more about the brand and expectations.
- Application and Financial Review You’ll submit a formal application and provide financial information to demonstrate your ability to meet investment requirements. TES will assess your application to ensure you meet their standards.
- Discovery Day You may be invited to attend a Discovery Day at TES headquarters or virtually. This event gives you an in-depth look at the company, its operations, and allows you to meet the support team and learn more about their franchise model.
- Franchise Agreement Signing If both parties are ready to move forward, you’ll sign the franchise agreement and pay the initial franchise fee. This formalizes your commitment to join TES as a franchisee.
- Training Program TES provides a comprehensive training program to help you get started, covering client acquisition, coaching techniques, and business management. This training is essential to prepare you for your role as a business coach.
- Business Setup and Pre-Launch Marketing You’ll finalize preparations for your business, including setting up your office space, establishing a client management system, and initiating marketing efforts. TES supports you in promoting your new franchise locally.
- Start of Operations With everything in place, you’re ready to launch and start working with clients. TES will continue to provide ongoing support, resources, and guidance to help you grow your business and achieve your goals.
Pros & Cons
Pros
Established Brand: With nearly 40 years in the industry, TES is a well-respected name in business coaching, which can attract clients seeking experienced guidance.
Lower Overhead: Unlike traditional franchises, TES doesn’t require a physical storefront or inventory, reducing ongoing costs and making it a more affordable option.
No Royalties: TES does not charge ongoing royalties, allowing franchisees to keep a larger portion of their revenue and maximize their earnings.
Flexible Schedule: As a business coach, you have the flexibility to manage your schedule and work with clients on your terms, which can lead to a better work-life balance.
Cons
Modest Earnings Potential: The revenue potential may be lower compared to other franchise models, making this a better fit for those looking for steady income rather than high returns.
Client Acquisition Responsibility: Success in this franchise depends on your ability to attract and retain clients, which requires strong networking, sales skills, and ongoing marketing efforts.
Competitive Market: The coaching and consulting industry has grown, leading to competition from other franchise systems and independent consultants, which may make client acquisition more challenging.
