About ProSource Wholesale Showroom Franchise
ProSource Wholesale Showroom is a franchise that operates wholesale showrooms catering primarily to the non-retail trade.
Franchisees run showroom/store locations that sell floorcoverings, kitchen and bath cabinets, vanities, countertops, and related products to builders and contractors, interior decorators and designers, remodelers, floorcovering installers, kitchen and bath installers, architects, floor covering dealers, and commercial end-users such as schools, restaurants, and office buildings.
The showrooms operate on a "Members only" customer format, serving authorized trade professionals rather than general retail consumers.
ProSource Wholesale Showroom Franchise Cost & Fees
Minimum Investment
$910K
Average Investment
$914K
Maximum Investment
$917K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $46,450 | One-time payment upon signing |
| Royalty Fee | 3% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Not to exceed $30,000 for Grand Opening; minimum $25,400 for balance of first year; average annual marketing expense $35,457 per Showroom | National brand fund |
| Total Investment Range | $910,216 – $916,966 | Includes build-out, inventory, working capital |
The investment range of $910K–$917K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% of Gross Sales) and marketing fee (Not to exceed $30,000 for Grand Opening; minimum $25,400 for balance of first year; average annual marketing expense $35,457 per Showroom) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $46,450 | $46,450 |
| Furniture & Equipment | $76,351 | $76,351 |
| Merchandising Displays and Samples | $99,816 | $99,816 |
| Signage and Trade Dress / Graphics | $18,799 | $18,799 |
| Systems | $47,005 | $47,005 |
| Inventory | $15,000 | $15,000 |
| Remodel Expense | $362,207 | $362,207 |
| Real Estate Lease | $34,500 | $41,250 |
| Training (Your costs) | $8,061 | $8,061 |
| Additional Funds (3 months) | $150,000 | $150,000 |
| Marketing | $0 | $0 |
| Wages and withholding (pre-opening) | $52,027 | $52,027 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000-$46,450 plus ProSource's costs and expenses |
| Renewal Fee | $2,000 plus ProSource's costs and expenses |
| Technology Fee | $1,030/month fixed ($780 each additional Showroom) plus variable component based on Gross Sales (Digital Platforms Fee) |
| Audit Fee | Cost of audit plus interest at lesser of 18% per annum or highest legal rate on underpayment |
| RFMS Computer Service Fee | $567-$927 per month based on number of users |
| 20/20 Yearly License Fee | $1,440 per year, per license |
| Gateway Software License Fee | $99 per month |
| CRM Platform Fee | $249 per month |
| Marketing Services Fee | $585 per month |
| Local Showroom Pages | $279 per month |
| System Branding Fund | Not yet established; if implemented, not to exceed 0.25% of Gross Sales |
| Additional Training | Not to exceed $5,000 per year |
| Conventions | $449-$699 per attendee; Regional Meeting $300 per person |
| On Going Sample Fees | Not to exceed $10,000 per year |
| Late Charge Fee | $50 per day |
| ProSource Cooperative Membership Fee | $2,499 plus $1 subscription fee (optional) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 8 days, facilitated in 2 separate events |
| Classroom Training | 56 hours |
| On-the-Job Training | 0 hours |
| Training Location | ProSource National Office, St. Louis, Missouri |
| Additional Training | Accelerate is a 5-day training workshop for new owners and key staff, offered 8 times per year. A second 3-day workshop program focuses on strategic aspects of showroom management, held after 6 months of operation. Mandatory attendance at annual ProSource convention and Regional Sales Meeting. Additional mandatory training not to exceed $5,000 per calendar year per manager. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive (conditional on maintaining Base Market Share) |
| Exclusive Territory | Yes |
| Territory Size | Defined by zip codes |
| Description | Franchisees are assigned a protected Area defined by zip codes. The territory is exclusive as long as the franchisee meets or exceeds the Base Market Share, defined as 4% of the Flooring Potential in the Area. If the franchisee fails to meet the Base Market Share after a 36-month grace period, ProSource may establish additional showrooms within the Area. ProSource reserves the right to sell products via internet, mail, and telemarketing within the Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional terms of 10 years each (20 years maximum) |
| Renewal Fee | $2,000 plus ProSource's costs and expenses |
| Renewal Conditions | Must be in good standing, in compliance with franchise agreement, sign new agreement (terms may differ), complete training, pay fee, remodel and/or reequip, sign release, attain satisfactory quality review scores |
| Transfer Fee | $10,000-$46,450 plus ProSource's costs and expenses |
| Transfer Conditions | New franchisee qualifies, transfer fee paid, new franchisee assumes lease, release signed, current franchise agreement and related documents signed by new franchisee, franchise not in default, transferee completes training, approval of material terms, waiver of right of first refusal, transferee to remodel/reequip |
| Termination for Cause | ProSource can terminate only if franchisee defaults. Curable defaults: 10 days to cure monetary defaults, 30 days to cure non-monetary defaults. Non-curable defaults include: termination of real estate lease, underreporting Gross Sales by more than 2% or any one time by more than 5%, threat to public, breach of non-compete, no insurance, conviction of felony, premises closed 3+ consecutive days, bankruptcy, unapproved transfers, misuse of trademark, false statements, unauthorized use of Marks or Confidential Information. |
| Non-Compete Period | 12 months after termination or expiration |
| Non-Compete Details | No involvement in competing business within 25 mile radius of any current or prior ProSource Showroom for 12 months after termination or expiration. During the term, no competing business within 25 mile radius, no solicitation of customers, no association with competing franchise system, no supplier or distributor of floorcovering products or K&B Products. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | ProSource recommends but does not require the franchisee or a principal to participate in daily operations. The business must be directly supervised on-premises by at least one full-time Showroom Manager and at least one full-time Kitchen and Bath Designer who have completed ProSource's training program. Neither the Showroom Manager nor the Kitchen and Bath Designer needs to be an owner. |
| Required Suppliers | Floorcovering products and K&B Products must be purchased from ProSource-approved sources. Interior items including equipment, display racks, fixtures, modular counter system, card key system (ProKey), samples and interior signs must be purchased from ProSource or approved suppliers. All exterior and interior signs must be purchased from ProSource or ProSource approved suppliers. Software must be licensed from RFMS and 20-20 Technologies. |
| Supply Restrictions | ProSource reserves the right to designate any supplier as the sole supplier for particular goods or services. Products must be purchased from ProSource-approved sources only. ProSource is the only approved supplier for interior signs and printed materials for the Member Acquisition Campaign. |
| Franchisor Revenue from Suppliers | Certain suppliers pay rebates of 0% to 6% of the price paid by franchisees. For FY2022, ProSource revenues from required purchases were $829,154, approximately 2.12% of total revenues of $39,028,712. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | ProSource may offer financing for costs incurred in building out and developing a new ProSource Showroom for existing ProSource franchisees or shareholders of CCA, subject to credit approval. Financing is on a reimbursement basis at the Prime rate of interest as published by The Wall Street Journal, with 60-month repayment terms. ProSource also offers financing of a portion of the initial franchise fee: $34,450 is payable in a lump sum upon execution of the Franchise Agreement, and subject to credit approval, $12,000 is payable in twelve equal monthly payments of $1,000 each. |
ProSource Wholesale Showroom Franchise Earnings — Item 19
Average Revenue
$6.7M
Median Revenue
$5.3M
Revenue Range
$1.1M – $28.5M
Sample Size
138 units
Past financial performance does not guarantee future results. Individual results will vary.
ProSource Wholesale Showroom Litigation & Risk Flags
Clean Litigation RecordProSource Wholesale Showroom has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
ProSource Wholesale Showroom System Growth
Total Units
148
Franchised
145
Company-Owned
3
ProSource Wholesale Showroom currently operates 145 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 3 | 2 | 142 |
| 2021 | 3 | 1 | 144 |
| 2022 | 1 | 0 | 145 |
Transfers: 4 | Closures: 0
State Registrations
Registered in 39 states: AL, AZ, AR, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NV, NJ, NM, NY, NC, OH, OK, PA, SC, TN, TX, UT, VA, WA, WI
ProSource Wholesale Showroom Franchise — FAQ
The total investment to open a ProSource Wholesale Showroom franchise ranges from $910,216 to $916,966, per their Franchise Disclosure Document. This includes the initial franchise fee of $46,450. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
ProSource Wholesale Showroom charges a royalty fee of 3% of Gross Sales of gross sales, plus a Not to exceed $30,000 for Grand Opening; minimum $25,400 for balance of first year; average annual marketing expense $35,457 per Showroom contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the ProSource Wholesale Showroom Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from ProSource Wholesale Showroom to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, ProSource Wholesale Showroom franchise owners report average revenue of $6.7M and median revenue of $5.3M. This is based on a sample of 138 units. Past performance does not guarantee future results.
ProSource Wholesale Showroom has been franchising since 1991. The FDD shows an investment range of $910,216-$916,966, a 3% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $46,450 and the total investment ranges from $910,216 to $916,966 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from ProSource Wholesale Showroom and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with ProSource Wholesale Showroom or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com