DirectBuy vs The Entrepreneurs Source
DirectBuy vs The Entrepreneurs Source: DirectBuy costs $364K to $637K to open; The Entrepreneurs Source costs $100K to $172K. DirectBuy has 27 units, The Entrepreneurs Source has 30. SBA loan history: DirectBuy = 29 loans (55.2% default); The Entrepreneurs Source = 38 loans (15.8% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
DirectBuy vs The Entrepreneurs Source: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
The Entrepreneurs Source requires the lower minimum capital commitment ($100K vs $364K for DirectBuy), a 264% spread. Initial franchise fees come in at $75K for DirectBuy versus $75K for The Entrepreneurs Source.
System Scale & Tenure
On scale, The Entrepreneurs Source operates 30 units to DirectBuy's 27. DirectBuy has been operating 55 years (founded 1971) versus 42 for The Entrepreneurs Source (founded 1984), a 13-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
The Entrepreneurs Source has the deeper SBA lending track record, with 38 7(a) approvals compared with 29 for DirectBuy. DirectBuy's peak SBA year was 2008 (9 loans); The Entrepreneurs Source's peak was 2021 (7 loans). The Entrepreneurs Source's more recent peak generally indicates fresher lender appetite. DirectBuy has the most SBA funded units in OH, with 4. The Entrepreneurs Source leads in CA, with 5. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded DirectBuy deals is $949K vs $134K for The Entrepreneurs Source, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 55.2% for DirectBuy and 15.8% for The Entrepreneurs Source, The Entrepreneurs Source has the cleaner SBA loss record by 39.4 points. PeerSense FPI scores come in at 28 (Fair) for DirectBuy and 64 (Moderate) for The Entrepreneurs Source, giving The Entrepreneurs Source the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 28/100 | 64/100 |
Health Tier | Limited | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 29 | 38 |
SBA Volume | – | – |
Default Rate | 55.2% | 15.8% |
Peer Tier | established | established |
Investment & Costs
Total Investment | $364K to $637K | $100K to $172K |
Franchise Fee | $75K | $75K |
Royalty Rate | N/A | 25% |
Ad Fund | N/A | 1% |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Disclosed |
System Size & Operations
Total Units | 27 | 30 |
Franchised Units | 27 | 30 |
Company Owned | – | – |
Term Length | N/A | 10 yrs |
Brand Information
Year Founded | 1971 | 1984 |
Franchising Since | N/A | 2016 |
Years Franchising | N/A | 10 yrs |
Headquarters | Merrillville, IN | OCEANSIDE, CA |
Category | All Other Personal Services | All Other Personal Services |
Website | ||
FDD Year | N/A | 2025 |
Which Is Better, DirectBuy or The Entrepreneurs Source?
Lower upfront capital required
Tie
DirectBuy: $364K starting · The Entrepreneurs Source: $100K starting
More SBA lender confidence
The Entrepreneurs Source
DirectBuy: 29 SBA loans · The Entrepreneurs Source: 38 SBA loans
Lower SBA default rate
The Entrepreneurs Source
DirectBuy: 55.2% · The Entrepreneurs Source: 15.8%
Larger system & brand presence
Tie
DirectBuy: 27 units · The Entrepreneurs Source: 30 units
More lender financing options
DirectBuy
DirectBuy: 21 unique lenders · The Entrepreneurs Source: 7 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
DirectBuy vs The Entrepreneurs Source: Franchise Funding Comparison
Comparing DirectBuy and The Entrepreneurs Source is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $100K to $637K.
DirectBuy has 29 SBA loans on record and The Entrepreneurs Source has 38. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
DirectBuy vs The Entrepreneurs Source, Frequently Asked Questions
Which is a better franchise investment, DirectBuy or The Entrepreneurs Source?
How much does a DirectBuy franchise cost compared to The Entrepreneurs Source?
Can I finance DirectBuy or The Entrepreneurs Source with an SBA loan?
Which has a lower SBA default rate, DirectBuy or The Entrepreneurs Source?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman