How much does The Entrepreneur's Source franchise cost?
The 2026 Franchise Disclosure Document estimates $114,350 to $133,550 to start a single-unit The Entrepreneur's Source franchise. The offer is for a TES Business that will most likely operate from a home office; commercial office space is optional rather than required. The range already includes the Initial Franchise Fee, Training Fee, opening equipment, initial marketing, six months of Additional Funds, and specified early Managed Services and Technology Program and Brand Building Fund payments.
Data basis: TES Franchising, LLC; FDD issuance date April 16, 2026; one U.S. single-unit TES Business; Items 5, 6, 7, 8, 10, 11, and 17; checked July 16, 2026. No matching 2026 FDD was verified on a franchise-controlled public website, so FDD citations below are unlinked Item-and-page references. The official The Entrepreneur's Source website is linked only for current brand information.
What are the key capital figures?
The largest fixed opening payment is the $75,000 Initial Franchise Fee, followed by a $25,000 to $32,500 Training Fee. The upper end includes the optional $7,500 charge for a Business Development Assistant to attend Phase 1 and Phase 2 training within 12 months.
What is included in the $114,350 to $133,550 range?
The 2026 opening-investment table contains ten expenditure categories. Every payment to the franchisor is described as nonrefundable; refundability of third-party payments depends on the third party's policies.
Contract, training, and required travel
At least $100,000 is due to the franchisor at signing: the $75,000 franchise fee plus the standard $25,000 training charge. The charge reaches $32,500 only when optional Business Development Assistant training is included.
| Item 7 category | 2026 range | When due | Payee |
|---|---|---|---|
| Initial Franchise Fee | $75,000 | When the Franchise Agreement is signed | TES Franchising |
| Training Fee | $25,000-$32,500 | When the Franchise Agreement is signed | TES Franchising |
| Travel and Living Expenses | $2,000-$3,500 | As incurred for Phase 1 OSE | Airlines, hotels, restaurants, and other providers |
$100,000 to $107,500 is payable at contract signing. This is a derived calculation from the Initial Franchise Fee and Training Fee, not a separate franchisor estimate. It excludes travel, insurance, equipment, marketing, and working capital paid later.
Opening setup and the first six months
The rest of the official range covers a modest home-office equipment package, insurance, initial marketing, early monthly system charges, possible Annual Conference costs, and six months of Additional Funds.
| Item 7 category | 2026 range | Timing or coverage | Payee |
|---|---|---|---|
| Insurance Premiums - Annual | $700-$1,500 | Before opening; first-year estimate | Insurance company |
| Equipment | $150-$2,500 | Before opening | Approved suppliers |
| Initial Marketing | $1,000-$2,000 | Before opening | Approved suppliers |
| MST Fees and Brand Building Investments | $3,000 | First six months after signing | TES Franchising |
| Annual Conference Fee | $0-$550 | If the conference falls within the initial period | TES Franchising |
| Annual Conference Travel and Living Expenses | $0-$3,000 | If the conference falls within the initial period | Travel providers |
| Additional Funds - 6 Months | $7,500-$10,000 | As incurred during the first six months | Third parties |
Each teal bar reaches the disclosed high amount; the black marker shows the low amount. The common scale runs from $0 to $75,000.
Interpretation: the two contract-signing charges dominate the official range; the remaining categories determine most of the $19,200 spread between the low and high totals. Source: 2026 FDD, Item 7, pp. 13-16. Values are official ranges; bar proportions are derived only for display.
When is the money paid?
The largest cash event occurs at signing, while the remaining opening costs are incurred before opening or through the first six months. The Franchise Agreement requires opening within 120 days of signing and paying the Initial Franchise Fee, subject to financing, permits, certifications, and training timing.
Why is there no required real estate or build-out cost?
The 2026 FDD says a franchisee is not required to rent or purchase real estate and will most likely operate the TES Business from home. A commercial office or executive suite is optional, which is why Item 7 does not include a lease, security deposit, construction, signage, or leasehold-improvement line.
Required operating setup
The Equipment estimate covers an all-in-one copier, printer, and scanner suitable for a small home office, plus a laptop using a currently supported Microsoft operating system. Existing equipment may be used when it meets TES specifications.
Optional premises change the budget
A franchisee who chooses commercial office space would need to verify rent, deposits, furnishings, utilities, insurance changes, and any improvements separately. Those voluntary premises costs are not resolved by the official Item 7 range.
The official total is built around a home-office model. Do not treat $133,550 as an upper limit if the buyer voluntarily adds commercial premises or incurs local costs outside the listed categories.
Which fees continue after opening?
The 2026 Item 6 table does not list a conventional royalty calculated as a percentage of total Gross Revenues. Instead, TES Franchising retains specified shares of Placement Fees, Additional Revenue Fees, Affiliate Partner Referral Fees, and Funding Partner Referral Fees, while also charging fixed monthly Brand Building and Managed Services and Technology obligations.
| Ongoing obligation | Amount or basis | Timing | Buyer interpretation |
|---|---|---|---|
| Placement Fee Share | 25% of Placement Fees collected | As incurred | TES remits the 75% Net Placement Fee after clearance. |
| Additional Revenue Fee Share | 25% of revenue collected | As incurred | Applies to specified bonuses or incentives paid by franchisors. |
| Affiliate Partner Referral Fee Share | 25% of Referral Fee collected | As incurred | TES retains 25% of qualifying Affiliate Partner Referral Fees. |
| Funding Partner Referral Fee Share | 20% of Referral Fee collected | As incurred | TES retains 20% of qualifying Funding Partner Referral Fees. |
| Brand Building Investment | $750 monthly; cap $950 | First deduction about 90 days after Phase 1 OSE | System-wide Brand Building Fund contribution. |
| MST Fee | $150 monthly per individual; cap $200 | Starts in the Phase 1 OSE month | Varies with the number of users and vendor/service costs. |
| Local Marketing | Minimum $300 monthly; cap $500 | Monthly | Required spend on approved proactive marketing and advertising. |
| Annual Conference Fee | Currently $550 per person; cap $750 | About two months before the conference | Due whether or not the required attendee attends; travel is separate. |
This one-user comparison combines the current or capped MST Fee, Brand Building Investment, and Local Marketing minimum. It excludes revenue shares, conference costs, and event-triggered fees.
Interpretation: for one MST user, the disclosed fixed monthly base is currently $1,200 once all three obligations apply; the stated caps total $1,650. Both totals are derived arithmetic, not franchisor estimates. Source: 2026 FDD, Items 5 and 6, pp. 5-8.
Which costs arise only after a specific event?
Item 6 contains material charges that do not belong in the ordinary opening budget but can become payable after nonattendance, extra support, transfer, renewal, audit findings, late payment, default, or termination.
- Conference nonattendance: currently $770 per missed full day and $400 per missed half day, generally charged within 15 days after the Annual Conference.
- Additional assistance or training: currently $770 per day plus travel expenses when travel is required; payment is due seven days before the requested or required assistance.
- Transfer and renewal: the Transfer Fee is 25% of the then-current Initial Franchise Fee. The Renewal Fee is $5,000 if the franchise qualifies for a successor agreement after the initial 10-year term.
- Audit and insurance enforcement: an audit estimated at $1,000 to $12,000 may be charged when Gross Revenues were understated by more than 2% or reports were not submitted. If TES obtains required insurance, the franchisee reimburses the cost plus a 20% administrative fee.
- Payment failures: the Standard Late Payment Fee is $100 per occurrence plus disclosed interest; the Insufficient Funds Fee is $100 per occurrence; failure to remit specified revenue fees after 48 hours can trigger $500 per day.
- Claims, enforcement, and disputes: indemnification, professional fees, client-satisfaction reimbursements, mediation, and arbitration costs vary with the circumstances.
- Trademark misuse and early termination: unauthorized use of TES Marks carries $25,000 per occurrence. Certain unlawful or for-cause terminations can trigger remaining-term MST Fees, Brand Building Fees, and projected Placement Fee Shares; a compliant franchisee may request a Mutual Separation Agreement with a $25,000 liability cap.
The event-triggered amounts can be more material than the routine monthly charges. They should not be inserted into the Item 7 opening total, but the Franchise Agreement should be reviewed for the circumstances that activate them.
Does TES disclose a liquid-capital or net-worth minimum?
No minimum Liquid Capital, Net Worth, or Non-Borrowed Funds threshold is stated in the 2026 FDD. That absence does not reduce the Estimated Initial Investment and does not mean every buyer can finance the full amount. Lenders and TES may still assess financial resources, credit, collateral, and guarantees.
- Estimated Initial Investment
- $114,350 to $133,550 for one single-unit TES Business under Item 7.
- Liquid Capital
- No minimum figure is disclosed in the 2026 FDD; this would mean accessible funds, not the total value of all assets.
- Net Worth
- No minimum figure is disclosed in the 2026 FDD; net worth is not the same as cash available for opening costs.
- Additional Funds
- $7,500 to $10,000 for the first six months, already included in the Item 7 total.
Ask TES Franchising for its current candidate financial criteria in writing and compare them with the lender's equity, collateral, and personal-guarantee requirements. Do not substitute the Item 7 total for a disclosed approval threshold.
Can the startup cost be financed?
Item 10 says TES Franchising may refer candidates to four approved third-party funding providers: Guidant Financial, Jumpstart Finance, Benetrends, and Start Up Loans USA. The disclosed options include Rollover for Business Start-Up arrangements, SBA loans, term loans, unsecured financing, portfolio loans, HELOC financing, and other lender products. TES does not guarantee any note, lease, or obligation.
The FDD's lender tables are a disclosure of possible arrangements, not approval. Provider terms can change, and the SBA 7(a) program and SBA 504 program have separate eligibility, lender, use-of-funds, collateral, and repayment rules.
Is there a veteran discount?
Yes. The 2026 FDD provides a 15% Initial Franchise Fee discount for an honorably discharged U.S. armed-forces veteran who provides a DD214. It also states that a spouse's DD214 may be accepted with a marriage certificate.
Applied to the disclosed $75,000 fee, 15% equals an $11,250 reduction and a $63,750 discounted amount. Those figures are derived arithmetic. Item 7 does not publish a separate veteran-adjusted Estimated Initial Investment total, so the official $114,350 to $133,550 range should remain the primary disclosed range.
Source: 2026 FDD, Item 5, p. 5; Item 7, pp. 14-15.What should a buyer verify in the current documents?
The official range is specific enough to frame the capital decision, but several buyer-dependent obligations must be confirmed before signing.
- Confirm the training configuration. Determine whether the $7,500 optional assistant training is being selected and whether it is due at signing.
- Confirm the number of MST users. The current $150 amount is per individual per month, so additional users increase the recurring total.
- Confirm premises assumptions. Verify that the plan is home-based; obtain separate documented estimates if commercial office space is chosen.
- Confirm the Annual Conference calendar. The first-six-month range changes if the conference and its travel costs fall inside the initial period.
- Confirm current monthly amounts and caps. Review the then-current MST Fee, Brand Building Investment, Local Marketing minimum, and Annual Conference Fee before signing.
- Confirm financing and personal obligations. Compare lender terms, down payment, collateral, personal guarantees, and closing costs with the official disclosed uses of funds.
- Confirm the current FDD and state addenda. The FTC Franchise Rule explains the disclosure framework, while the FTC Franchise Rule Compliance Guide provides official detail on the document's required items and delivery rules.
What is the practical capital decision?
The verified 2026 cost contract starts with an official $114,350 to $133,550 opening range for one primarily home-based unit. The immediate signing obligation is $100,000 to $107,500 before travel and other opening costs. After the first on-site training event, the buyer moves into fixed monthly technology, brand-fund, and local-marketing obligations, plus percentage-based shares of specified fees. No liquid-capital or net-worth minimum is disclosed, and commercial office costs are outside the home-based Item 7 structure. The most important unresolved variables are the chosen training configuration, number of MST users, conference timing, financing terms, and whether the buyer adds optional premises.
Related Blogs
- What Are Some Alternatives to The Entrepreneur's Source Franchise?
- How Does The Entrepreneur's Source Franchise Work?
- How to Start The Entrepreneur's Source Franchise in 7 Steps: Checklist
- What are the Pros and Cons of Owning The Entrepreneur's Source Franchise?
- How Much Does an Entrepreneur's Source Franchise Owner Make?