FILING · MN · 2026 FDD
The Entrepreneurs Source FDD (Franchise Disclosure Document) — 2026
The FDD is the 23-item legal disclosure every U.S. franchisor must hand you at least 14 days before you sign or pay anything (FTC Franchise Rule, 16 CFR 436). The Entrepreneurs Source's most recent FDD tracked here is the 2026 FDD, filed with the Minnesota Department of Commerce (public CARDS portal). Registration-state filings are public records, so you can read it free, with no sign-up.
PUBLIC RECORD · FILED 2026 · SOURCE STATE MN
| ITEM 5 | Initial franchise fee | $75,000 |
| ITEM 7 | Total initial investment | $114K–$134K |
| ITEM 3 | Disclosed litigation matters | 2 |
| ITEM 19 | Earnings disclosure (FPR) | Yes — median unit volume $88K (population and period as defined in the filing's Item 19) |
| ITEM 20 | Outlets (fiscal 2025) | 262 franchised at year end · 30 exits (exit rate 12.7%, fiscal 2025) |
| ITEM 21 | Franchisor financial statements | Unmodified (clean) opinion — Velez & Hardy, CPAs and Advisors |
The headline figure is Average Annual Income Per TES Business (placement fees) for Calendar 2025, for 205 of 262 units, leaving out not open for business the entire calendar year, signed in December but not yet attended OSE Phase 1 Training. The mean is 27% above the median, so a minority of high-volume units pulls the average up. It shows no costs, so it says nothing about what an owner keeps.
Graded on three things the filing states: coverage (2 points if the figure covers at least 75% of the units it is compared with, 1 point for 50–75%), centre (2 points if it prints both a median and a mean, 1 for one of them), and costs (2 points for costs through a profit line or full cost detail, 1 for some cost items). 5–6 points = More complete, 3–4 = Partial, 0–2 = Limited. The grade describes the disclosure, not the business.
| What is measured | Average Annual Income Per TES Business (placement fees) (revenue) |
| Period | Calendar 2025 |
| Whose results | Franchised outlets |
| Units included | 205 of 262 TES Businesses with signed Franchise Agreements (2025) |
| Left out |
|
| Average (mean) | $112K |
| Median | $88K |
| Mean vs median | mean 27.4% above median |
| Met or beat the average | 78 / 38% |
| Costs shown | None — sales only |
| Where | p. 46 (Item 19 runs pp. 45–49) |
| The filing's words | “all U.S. franchised TES Businesses open for business for 1 year or more during the 2025, 2024, and 2023, calendar years and operated for the entire year” |
Velez & Hardy, CPAs and Advisors gave an unmodified (clean) opinion on the statements in the 2026 FDD; revenue rose 28% from FY2023 to FY2025.
Revenue · FY2025
$34.8M
extracted · not cross-checked
Net income · FY2025
$2.2M
p. 147 · matched to statement
Where FY2025 revenue came from
Royalty share not extracted
initial-fee share not extracted
- Fiscal years covered: FY2023, FY2024, FY2025 (2026 FDD, statements from p. 147)
- Statements are for: TES FRANCHISING, LLC
- Parent / owner: not identified in the statements
| Fiscal year | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Total revenue | $27.2Mextracted · not cross-checked | $32.3Mextracted · not cross-checked | $34.8Mextracted · not cross-checked |
| Net income (loss) | $1.6Mextracted · not cross-checked | $2.3Mp. 147 · matched to statement | $2.2Mp. 147 · matched to statement |
| Cash at year end | not extracted | $5.4Mp. 146 | $1.7Mp. 146 |
How to read this: royalties recur as long as franchisees trade; initial and development fees arrive only when new franchises are sold. A franchisor whose revenue leans on initial fees is funding itself by selling territories, and that revenue stops when sales slow. Under ASC 606 most franchisors recognize initial fees over the agreement term, so the line understates the cash collected in a strong selling year. Ad-fund revenue, where reported, is included in total revenue as the statements present it.
Each figure links to its page in the filed PDF. “Matched to statement” means our extraction and a second, rule-based read of the statement page agree; “extracted · not cross-checked” means the statement page is a scanned image or could not be read as text. Figures we could not place on a consistent scale are withheld, not guessed. Spotted an error? Report a correction.
Every figure above was extracted by software from the 2026 The Entrepreneurs Source FDD as filed (figures are not individually checked by a person) and links back to that document. Fields that could not be extracted are omitted; no figure here is estimated. Extraction errors are possible: the filing controls, and FDDs are reissued annually; verify against the current issuance before relying on any number. Spotted an error? Franchisors and owners can report it via the contact on our Terms page.
The Entrepreneurs Source FDD questions, answered
Where can I download the The Entrepreneurs Source FDD for free?
The Entrepreneurs Source's 2026 Franchise Disclosure Document is a public record, filed with the Minnesota Department of Commerce (public CARDS portal). It can be downloaded free from the source link on this page — no broker form, no email signup required.
What year is The Entrepreneurs Source's most recent FDD on file?
The most recent The Entrepreneurs Source FDD tracked here is the 2026 FDD, filed with the Minnesota Department of Commerce (public CARDS portal). Franchisors must update their FDD annually; confirm you are reading the current issuance before signing.
Does The Entrepreneurs Source's FDD disclose earnings (Item 19)?
Yes — The Entrepreneurs Source makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $88K. Read the basis fine print: franchisors choose which units and metrics to include.
What does The Entrepreneurs Source's FDD Item 20 show?
In fiscal 2025, The Entrepreneurs Source ended with 262 franchised outlets; 30 of 236 open at the start of the year left the system (exit rate 12.7%, fiscal 2025) through terminations, non-renewals, and "ceased operations — other reasons".
The The Entrepreneurs Source validation checklist
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