The Entrepreneur's Source franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.20 ↗

Franchise fees and ongoing costs

Franchise fee

$75,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

No traditional royalty on sales. TES keeps 25% of Placement Fees the franchisee generates (franchisee keeps 75%); 25% of Additional Revenue Fees and Affiliate Partner Referral Fees; 20% of Funding Partner Referral Fees.

Marketing contribution

Not captured

Technology fee

Managed Services and Technology (MST) Fee currently $150 per user per month; capped at $200 per month

Other fees

Brand Building Investment $750/month (may rise to $950/month); Annual Conference Fee currently $550 per person (cap $750), due whether or not you attend; Annual Conference Non-Attendance Fee $770 per full day / $400 per half day

Working capital (FDD Item 7)

Item 7 gives 6 months, not 3: Additional Funds - 6 Months $7,500 to $10,000 (office supplies, travel and entertainment, possible payroll, state licensing, business supplies, other overhead)

Fees sourceFDD p.13 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.20 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median annual income (Placement Fees earned, before TES's 25% Placement Fee Share is deducted) per franchised TES Business open 1+ year; also highest/lowest, average Placement Fee per transaction, and top/bottom 5

Reporting period

Calendar year 2025 (also 2024 and 2023)

Sample

205 U.S. franchised TES Businesses open 1+ year in 2025 (of 262 with signed agreements; 253 open at 12/31/2025)

Reported average

$112,098

Reported median

$88,000

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.47 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

236

Year-end outlets

262

Net change

+26

Derivation

ending minus starting outlets

Openings

55

Terminations

23

Non-renewals

4

Other closures

1

Reacquisitions

0

Transfers

1

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.51 ↗

SBA loan history

Loan activity

16 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$160,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

5 loans

Historical charge-off share

27.78%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

5 / 18

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does The Entrepreneur's Source franchise cost?

single unit franchise (home-based): $114,350 to $133,550 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $75,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.20 ↗

Franchise fee sourceFDD · page not captured ↗

How much do The Entrepreneur's Source owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average and median annual income (Placement Fees earned, before TES's 25% Placement Fee Share is deducted) per franchised TES Business open 1+ year; also highest/lowest, average Placement Fee per transaction, and top/bottom 5. Sample: 205 U.S. franchised TES Businesses open 1+ year in 2025 (of 262 with signed agreements; 253 open at 12/31/2025). Period: Calendar year 2025 (also 2024 and 2023).

Item 19 performance sourceFDD p.47 ↗

What's the SBA charge-off rate for The Entrepreneur's Source?

27.78%; numerator / denominator: 5 / 18. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $160,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 5 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗