PROSOURCE WHOLESALE

Item 7 details a hefty initial investment of $955,599 to $978,799, including a $46,450 franchise fee, driven by showroom buildouts and inventory for floorcoverings plus required kitchen/bath products. Ongoing costs hit with 3% royalties (minimum $2,000/month), plus fixed fees of $2,563-$4,068 monthly for marketing, training, software, and more—no brand fund yet. Item 19 shines brightly: average gross revenue clocks $6,124,920, median $4,764,828 across units, suggesting strong top-line potential in a members-only wholesale setup backed by parent CCA Global Partners' buying power. Subtract fees and you'd eye healthy EBITDA margins if ops run tight, though no net profit data is given.

System health metrics temper the revenue allure. Item 20 projects just 1 new unit amid 145 franchise and 3 corporate locations, signaling contraction or saturation in this mature brand—franchising 36 years with only modest growth. Ten system transfers hint at owner turnover, while 11 SBA loans averaging $681,245 show lenders' willingness but underscore capital intensity. For trade-savvy investors eyeing $6M+ sales, ProSource delivers volume, but sparse expansion and transfers demand scrutinizing local market demand and resale liquidity before committing.