ProSource Offers Limited Number of Exclusive Franchise Territories

Wholesale Flooring Franchise Expands, Takes on Big Box Home Centers

The Home Improvement phenomenon has reached an all time high, with product sales reaching $212 billion in 2003, and analysts predict a steady growth of 5.2 percent annually*. To capture an increasing share of this booming industry, ProSource Wholesale Floorcoverings, one of the largest professionals-only flooring wholesalers in North America with more than 175,000 members, recently announced expansion plans through a limited number of exclusive franchise territories.

“We are the trade professional’s showroom serving a unique and growing niche, which makes our concept in extremely high demand,” said David Kraeling, president of ProSource. “Our company plans call for 20 new showrooms each year for the next five years.”

Developed by the flooring industry’s premier cooperative CCA Global Partners, ProSource opened its first showroom in St. Louis, Mo. in 1990. Within two years, ProSource went nationwide with 30 additional showrooms. After only seven years, ProSource became one of the top five largest wholesale distributors of floor coverings in the United States. Drawing on the power of CCA Global, ProSource offers a wide selection of flooring from more than 110 manufacturers, including regional brands, private-label offerings and exclusive imports. The division generates an estimated $500 million in annual sales and is experiencing double digit growth.

Once available only to members of CCA Global Partners, ProSource opened its Franchise Opportunity to all qualified candidates this year. Exclusive territories are being offered in California, the District of Columbia, Florida, Georgia, Indiana, Iowa, Louisiana, Massachusetts, Maine, Michigan, Missouri, New Hampshire, New Jersey, Pennsylvania, Tennessee, Texas and Wisconsin.

Hot Concept High Growth Industry = Ideal Franchise Opportunity

As sales of new and existing homes increase, an estimated 26 million homeowners initiate improvement projects amounting to more than $135 billion annually (Source: NAHB Economics). Some construction industry forecasts predict home improvement spending will soon rival new home construction spending. Also on the rise is commercial development with new retail stores, hotels and multi-family housing cropping up in metropolitan and rural markets.

Entrepreneurs seeking a lucrative investment opportunity in the home improvement industry are flocking to the established ProSource franchise concept, which currently sells through a network of 147 showrooms catering to builders, remodelers, interior designers, installers, architects, real estate professionals, contractors and property managers.

“Our company has tremendous buying power, strong relationships with manufacturers and the ability to get our members products when they need it for their clients, without requiring franchisees to carry inventory,” Kraeling added. “Our business model was created around the trade professional community and their unique needs. No home center can compete with our guaranteed low prices, enormous selection of product lines, and 24-hour showroom access for members.”

With a franchise fee of $46,450 and total startup costs between $288,000 and $297,000, ProSource offers a flexible franchise opportunity with excellent ROI potential in a high growth industry. ProSource provides franchisees with exclusive territories, as well as ongoing marketing, technology and operations support to ensure long-term success. Through ProSourceMembers.net, franchisees can access information on nearly every aspect of the business 24 hours a day including advertising, marketing, products, pricing and training. All marketing is handled by ProSource home office, so franchisees can focus on their members and quality service.

A Turnkey Operation That “Floors” The Competition

Following years of research, ProSource has established showroom designs that maximize available floor space to effectively display the industry’s largest and most diverse floorcovering selection. A prototype for new markets offers 8,000 to 10,000 square-foot floor plans that integrate convenient traffic flow and generous workspace with the goal of maximizing product sales. In mature, metropolitan markets, showrooms can be as large as 20,000 square feet.

“The ProSource business model provides franchise owners with a no-inventory operation, minimal staffing requirements, the ability to work exclusively with professional clientele, and reasonable hours of operation,” said Mark Jameson, vice president of franchise development for ProSource. “Our turnkey concept has proven to be a model for success that works for trade professional members and franchise owners.”

The ProSource franchise opportunity is an appealing investment for those who are seeking an opportunity requiring minimal staffing, limited inventory and no installation hassles.

About ProSource Wholesale Floorcoverings

ProSource is the #1 professionals-only flooring showroom franchise in North America. With more than 145 showrooms in the United States and Canada, and $3 billion in annual buying power among its affiliates, ProSource guarantees professionals the largest selection of name brand flooring at the lowest price. Each showroom offers more than 20,000 flooring choices, including carpet, vinyl, ceramic tile, natural stone, laminate and wood products from the world’s leading manufacturers. Showrooms are available exclusively to trade professional members and their clients.