The Entrepreneur’s Source Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$114,350 - $133,450
Franchise Fee
$63,750
Total US Locations
236
Business Summary
The Entrepreneur's Source is a franchised business that offers coaching, placement, and franchising services to individuals, businesses, franchise prospects, and franchisors. Its businesses coach individuals interested in exploring franchise opportunities and assist franchisors in obtaining prospective franchisees. The Entrepreneur's Source also works with businesses seeking to expand through franchising.
Corporate History
The Entrepreneur's Source was organized as a Connecticut limited liability company on October 8, 1997, and began offering its coaching, placement, and franchising services franchises on September 23, 1997. From 1999 to 2010, The Entrepreneur's Source also offered regional developer franchises, but this is no longer part of its business. The company primarily focuses on franchising its TES Businesses and does not operate any company-owned units of this specific franchise type. The Entrepreneur's Source previously expanded into Canada, offering franchises from 2003-2012 and again from 2016-2018, and resumed offering them in Canada since 2020. As of December 31, 2024, it has four franchised outlets in Canada. An affiliate, AdviCoach Franchising, LLC, also offered franchises from 2005 to 2020, focusing on business coaching without placement services.
Financial Overview
Investment Range
$114,350 - $133,450
Franchise Fee (Low)
$63,750
Franchise Fee (High)
$75,000
Equipment Costs (Low)
$150
Equipment Costs (High)
$2,500
Working Capital
$8,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Entrepreneur's Source appears to be in strong financial health, as evidenced by its unqualified audit opinions for fiscal years 2024, 2023, and 2022. The company has consistently reported positive net income, with $1,740,532 in 2024 and $1,577,609 in 2023. It also maintains strong working capital, with current assets significantly exceeding current liabilities in recent years, demonstrating its ability to cover short-term obligations. No concerns regarding its ability to continue operations have been raised by its independent auditors.
Financing Details
The Entrepreneur's Source does not directly offer financing. Instead, it can refer prospective franchisees to several approved third-party lenders, including Guidant Financial, Jumpstart Finance, Benetrends, and Start Up Loans USA. These lenders offer various financing products such as Rollover for Business Start-up (ROBS), SBA loans, unsecured installment loans, secured term loans, and home equity lines of credit (HELOC). The specific terms, interest rates (which vary, e.g., SBA 9.75%-15%, Term Loans 9%-20%), repayment periods (e.g., SBA 10-25 years, Term Loans 3-12 years), down payments (e.g., SBA 10-30%), and collateral requirements depend on the chosen lender and loan type. The Entrepreneur's Source does not guarantee any of these loans. It receives a referral fee from these lenders, ranging from $0 to $2,000, which it splits with the referred franchisee, with the franchisee receiving 80% of the referral amount.
Performance Metrics
Total US Locations
236
Franchised Units
236
Corporate Units
0
Franchising Since
1997
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
The Entrepreneur's Source has disclosed two legal actions. The first was an FTC complaint filed on April 7, 2015, alleging false and misleading representations regarding participation in certain dispute resolution programs. The Entrepreneur's Source entered into a Consent Agreement with the FTC on May 20, 2015, which prohibits such misrepresentations and requires compliance until May 20, 2035. The second action was an arbitration case where The Entrepreneur's Source was awarded $102,341.50 from former franchisees Garth and Jessica Leech. The orders in this case were issued on October 11, 2021, and March 7, 2022. The franchisees had terminated their agreement without legal justification and were ordered to pay all remaining fees and attorney's fees to The Entrepreneur's Source.
Bankruptcy History
The Entrepreneur's Source has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, The Entrepreneur's Source franchisees must provide written notice of their intent to renew between 12 and 18 months before the initial term ends. They must correct any operational deficiencies identified by The Entrepreneur's Source before the agreement expires, and their current agreement must not have been terminated. Franchisees are required to pay a renewal fee of $5,000 and sign a general release of all claims against The Entrepreneur's Source and its related parties. Additionally, they must sign The Entrepreneur's Source's then-current franchise agreement and any other required documents for the successor term, which may contain significantly different terms and conditions from their initial agreement.
Training & Support Program
Franchisor Assistance
The Entrepreneur's Source provides comprehensive assistance to its franchisees. Before opening, The Entrepreneur's Source enrolls franchisees in an Onboarding Training Module, assigns a Franchise Business Coach, provides initial Phase 1 On-Site Event Training, offers virtual education programs, gives specifications for required equipment and supplies, and grants online access to the Operations Manual. After opening, ongoing support includes business advice via various methods, guidance on advertising and marketing, and continued access to confidential materials like the Operations Manual and trademarks. The Entrepreneur's Source also offers additional and refresher training programs, which may be mandatory with associated fees if a franchisee is non-compliant. Franchisees are required to attend an annual conference, which also incurs a fee. The Entrepreneur's Source may also offer optional assistance such as modifying the System, conducting periodic business assessments, and hosting national or regional conferences.
Initial Training Hours
205
Training Location
Southbury, CT
Ongoing Support
After opening, The Entrepreneur's Source franchisees receive ongoing advice and guidance on business operations, advertising, and marketing through various channels including written materials, electronic methods, and telephone. They also maintain access to confidential materials such as the Operations Manual and trademarks. The Entrepreneur's Source provides additional and refresher training courses, which may be mandatory if a franchisee is non-compliant, potentially incurring an additional daily fee of $770. Franchisees are required to attend an Annual Conference each year and must participate in a minimum of 75% of the annual ongoing training, educational programs, and system updates offered by The Entrepreneur's Source.
Franchise Requirements
Ideal Candidate Profile
The Entrepreneur's Source seeks franchisees who can either operate the business themselves full-time or designate an approved Principal Operator to manage the day-to-day operations full-time. The designated Principal Operator, or the franchisee, must successfully complete the initial training program and meet The Entrepreneur's Source's qualification standards. All Principal Operators are required to sign a System Protection Agreement. Ideal candidates, especially if transferring ownership, should possess good moral character, adequate business experience, sufficient aptitude, and the financial resources necessary to operate the franchise, as determined by The Entrepreneur's Source.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
1
Territory Size Requirements
The Entrepreneur's Source franchises generally operate virtually and do not receive an exclusive territory. While the franchise is assigned to operate within a specific state ("Territory"), the franchisor typically will not place more than one TES Business per 500,000 population within the United States. Franchisees may face competition from other TES franchisees, company-owned outlets, and other distribution channels, and the franchisor may restrict marketing activities in certain zip codes if they interfere with existing franchisees.
Staffing Notes
The Entrepreneur's Source requires one designated person, either the franchisee or an approved Principal Operator, to dedicate full-time effort to each TES Business. This Principal Operator must be approved by The Entrepreneur's Source, successfully complete required training, and sign a System Protection Agreement. Franchisees may also choose to employ a Business Development Assistant, who, for an additional fee, can attend training. This assistant's role is strictly support and administration, and they are not permitted to act as a coach. All Key Individuals, including Principal Owners and their spouses, officers, directors, Principal Operators, and any employees or independent contractors who access confidential information, must sign the System Protection Agreement. Franchisees are solely responsible for hiring, training, and supervising their own employees and independent contractors, and The Entrepreneur's Source is not considered a joint employer.