About The Entrepreneur's Source Franchise
The Entrepreneur's Source is a coaching and consulting franchise that helps individuals explore business ownership opportunities.
Rather than selling a specific business, the brand's coaches guide clients through a discovery process to identify the right franchise, business, or career path based on their personal goals, skills, and financial situation.
The brand has been franchising since 1997.
The Entrepreneur's Source Franchise Cost & Fees
Minimum Investment
$118K
Average Investment
$122K
Maximum Investment
$126K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 | One-time payment upon signing |
| Royalty Fee | 25% of Placement Fees collected of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $750 per month | National brand fund |
| Total Investment Range | $117,600 – $125,900 | Includes build-out, inventory, working capital |
The investment range of $118K–$126K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (25% of Placement Fees collected) and marketing fee ($750 per month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $75,000 | $75,000 |
| Training Fee (Note 2) | $25,000 | $25,000 |
| Executive Suite / Office – 6 months (Note 3) | $0 | $1,000 |
| Travel And Living Expenses (Note 4) | $2,500 | $3,500 |
| Insurance Premiums – Annual (Note 5) | $1,050 | $1,500 |
| Equipment (Note 6) | $150 | $2,500 |
| Initial Marketing (Note 7) | $1,000 | $2,000 |
| MST Fees and Brand Building Investments (Note 8) | $5,400 | $5,400 |
| Additional Funds – 6 Months (Note 9) | $7,500 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 25% of the then current Franchise Fee |
| Renewal Fee | $5,000 |
| Technology Fee | Currently $150 per month per individual |
| Audit Fee | Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (we estimate this cost to be between $1,000 and $12,000) |
| Marketing | Minimum of $300 per month |
| Annual Conference Fee | Currently $450 or the then-current fee per person |
| Ongoing Training | Daily Attendance Fee |
| Additional Assistance Fee | Currently $770 per day plus any travel expenses |
| System Modification | Actual Cost |
| Insurance | Cost plus a 20% administrative fee |
| Late Payment Fee | $100 per occurrence, plus lesser of the daily equivalent of 12% per year simple interest or the highest rate allowed by law |
| Insufficient Funds Fee | $100 per occurrence |
| Indemnification | Will vary under circumstances |
| Professional Fees and Expenses | Will vary under circumstances |
| Client Satisfaction Reimbursement | Varies under circumstances |
| Mediation | Actual Cost |
| Arbitration | One-half of the arbitrator’s and administration expenses incurred during the arbitration process; provided, however, that the prevailing party shall be entitled to recover its expenses, including reasonable attorneys’ fees, accounting fees and arbitrator and administrative expenses |
| Future Fees and Future Placement Fee Shares | Amount of All Managed Services & Technology Fees and all Brand Building Fees that would be due for the remainder of the term of the FA and a projection of all Placement Fee Shares that would be due for the remainder of the FA, in each case, upon either unlawful termination of the franchise by you or termination of the franchise for cause by us. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 80.5 classroom hours and 207.5 on-the-job hours |
| Classroom Training | 80.5 |
| On-the-Job Training | 207.5 |
| Training Location | Southbury, CT and Home Office |
| Additional Training | We reserve the right to offer and hold additional ongoing training programs and franchise owners meetings, which may be mandatory. A daily attendance fee may be charged for these. You or your designated personnel must attend a minimum of 75% of annual ongoing training, educational programs, and system updates. Additional assistance or training beyond what is ordinarily provided will incur additional assistance fees. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | We generally will not place more than one (1) TES Business per 500,000 population within the United States |
| Description | This Franchise Agreement grants you a non-exclusive territory to operate throughout the United States. You will not receive any territory protections and you will share this territory with us and other franchisees. You are permitted to work from home and we anticipate that you will do so. We do not require you to obtain office space outside of your home, nor do we recommend that you do so. We may restrict direct marketing and direct mail marketing activities if they interfere with existing franchisees. We reserve the right to use all channels of distribution, including the Internet, catalog sales, telemarketing, and other direct marketing, to make sales within the Territory using our Marks. We also reserve the right to manage and service company-owned client contracts and support other TES Businesses within and outside the Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten (10) years |
| Renewal Term | one (1) additional ten (10) year period |
| Renewal Fee | $5,000 |
| Renewal Conditions | You must: provide us at least 12 but not more than 18 months advance written notice prior to the end of the term; correct any deficiencies in the operation of your TES Franchise identified in our written notice to you before expiration; sign our then-current franchise agreement and any ancillary documents for the successor term, and this new franchise agreement may have materially different terms and conditions (including, for example, those concerning fees and territorial rights) from the Franchise Agreement that covered your initial term; pay a renewal fee; and sign a general release of any and all claims against us, our officers, directors, employees, and agents. |
| Transfer Fee | 25% of the then current Franchise Fee |
| Transfer Conditions | New owner must have sufficient business experience, aptitude, and financial resources to operate the TES Franchise, as determined by the sole discretion of the franchisor; you must pay all amounts due us or our affiliates; new owner and its director must successfully complete our training programs; you must pay us a transfer fee; you and your principal owners must sign a general release in favor of us, our affiliates, and our and their officers, directors, employees, and agents; new owner must assume all obligations under your Franchise Agreement or, at our option, sign a new franchise agreement using our then-current form; you and your Principal Owners (or, in the case of Principal Owners making any such Transfer, those Principal Owners) must execute a non-competition agreement in favor of both TES Franchising and the Proposed New Owner no less restrictive than provision in Section 16.4. We also may approve the material terms of the transfer and require that you subordinate any installment payments to the new owners’ obligation to pay us. |
| Termination for Cause | We can terminate upon certain violations of the Franchise Agreement by you, including failure to develop/open the Franchise, abandonment, unauthorized transfer, insolvency, unauthorized use of products/services, conviction of felony/crime involving dishonesty, repeated defaults, non-payment of monies owed within 10 days of notice, or failure to comply with any other provision within 30 days of notice, or three or more separate occasions of failure to submit financial statements/reports or pay amounts due within any 12 consecutive month period. |
| Non-Compete Period | two (2) years |
| Non-Compete Details | No competing business for two (2) years within 50 miles of your TES Franchise, any TES Business or any company owned business (including after assignment or transfer). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Principal Operator must operate the TES Business on a full-time basis and successfully complete the training program. All Key Individuals (Principal Owners, their spouses, officers, directors, Principal Operators, and independent contractors/employees with access to Confidential Information) must sign the System Protection Agreement. Owners with more than 10% ownership must sign an owner's agreement. |
| Required Suppliers | You must either use advertising templates which we make available or specify or obtain our approval before placing any advertising. We recommend that you hire a bookkeeper or accountant and reserve the right to require a particular supplier or vendor. You must use the computer hardware and software that we periodically designate to operate your TES Franchise. You must obtain the computer hardware, software licenses, maintenance and support services, and other related services that meet our specifications from the suppliers we specify. You must obtain the insurance coverage required under the Franchise Agreement from an insurance company authorized to do business in your state and rated 'A' or better by A.M. Best & Company, Inc. |
| Supply Restrictions | We are an approved supplier of advertising material, but not the only approved supplier. We are the only approved supplier of the Managed Services and Technology Program. Our officer, Terry Powell, owns an interest in us. No franchisor officer owns an interest in any other supplier. If you desire to have a non-approved supplier, you must submit samples and a written statement for approval. We do not charge a fee to evaluate proposed suppliers. We generally respond within seven (7) days, but have up to 60 days. Approval must be received before use and can be revoked if the supplier no longer meets standards. You must stop purchasing from disapproved suppliers upon notice. |
| Franchisor Revenue from Suppliers | $215,285, representing 1.3% of our total revenue of $16,482,488. Our affiliates did not earn any revenue from required purchases or leases by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | We may refer you to third-party lenders like Guidant Financial, AllCap Funding, and Benetrends for financing. Guidant Financial offers Rollover for Business Start-Up, SBA loans, Portfolio Loans, Unsecured Financing & Equipment leasing, with 0% down for rollovers and 10-30% for SBA. Interest rates vary. AllCap Funding offers unsecured installment loans and lines of credit from $20,000-$600,000, with average interest rates of 8-12% over 5-7 years. Benetrends offers 401(k) Rollover For Business Start-Up and SBA 7a loan consulting for initial franchise and training fees, real estate, site improvements, equipment, furniture, and other legitimate business expenses. We receive referral fees from these lenders, ranging from $750-$1,500, and split 80% of this fee with the referred franchisee. |
The Entrepreneur's Source Franchise Earnings — Item 19
Average Revenue
$111K
Median Revenue
$95K
Sample Size
107 units
Past financial performance does not guarantee future results. Individual results will vary.
The Entrepreneur's Source Litigation & Risk Flags
Clean Litigation RecordThe Entrepreneur's Source 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.
The Entrepreneur's Source System Growth
Total Units
133
Franchised
133
Company-Owned
0
The Entrepreneur's Source currently operates 133 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 25 | 15 | 124 |
| 2020 | 24 | 29 | 119 |
| 2021 | 30 | 16 | 133 |
Transfers: 2 | Closures: 16
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$16.5M
Net Income
$883K
Total Assets
$5.6M
Audited by ELLSWORTH • STOUT CPAs and Consultants for year ending December 31, 2021.
The Entrepreneur's Source Franchise — FAQ
The total investment to open a The Entrepreneur's Source franchise ranges from $117,600 to $125,900, per their Franchise Disclosure Document. This includes the initial franchise fee of $75,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Entrepreneur's Source charges a royalty fee of 25% of Placement Fees collected of gross sales, plus a $750 per month contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Entrepreneur's Source 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 The Entrepreneur's Source to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, The Entrepreneur's Source franchise owners report average revenue of $111K and median revenue of $95K. This is based on a sample of 107 units. Past performance does not guarantee future results.
The Entrepreneur's Source has been franchising since 1997. The FDD shows an investment range of $117,600-$125,900, a 25% of Placement Fees collected 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 $75,000 and the total investment ranges from $117,600 to $125,900 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 The Entrepreneur's Source and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Entrepreneur's Source or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com