About CMIT Solutions Franchise
CMIT Solutions is a managed IT services franchise providing outsourced technology support primarily to small and medium sized businesses.
Services include consulting, project work, managed services, cloud computing, technical support, cybersecurity, and backup and disaster recovery solutions.
The brand has been franchising since 2010, and the franchise fee ranges from $49,950 to $60,450.
CMIT Solutions Franchise Cost & Fees
Minimum Investment
$103K
Average Investment
$135K
Maximum Investment
$168K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,950 to $60,450 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Professional Services (“GPS”) Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of GPS Revenue, subject to a Minimum MDF Contribution; At least $2,500 per month on local advertising | National brand fund |
| Total Investment Range | $102,570 – $168,200 | Includes build-out, inventory, working capital |
The investment range of $103K–$168K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Professional Services (“GPS”) Revenue) and marketing fee (2% of GPS Revenue, subject to a Minimum MDF Contribution; At least $2,500 per month on local advertising) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee and Territory Fee | $49,950 | $60,450 |
| Business Lists | $1,500 | $2,500 |
| Business licenses and prepaid expenses | $550 | $1,500 |
| Training expenses | $2,200 | $4,000 |
| Sales Training License Fee | $600 | $600 |
| Real property and leasehold improvements | $0 | $0 |
| Furniture and equipment | $0 | $2,500 |
| Initial marketing package | $2,500 | $4,650 |
| Marketing commitment – 6 months | $15,000 | $15,000 |
| Technical staffing personnel | $9,000 | $15,000 |
| Initial business package, including laptop | $1,270 | $2,000 |
| Additional funds – 6 months | $20,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 ($8,000 if to an existing franchisee) |
| Renewal Fee | $8,000 |
| Technology Fee | Currently $125 per month |
| Audit Fee | Will vary under circumstances (reimbursement for costs including legal fees, accountant fees, travel, room, board, and employee compensation) |
| EFT NSF fee | Either (a) $100 for first occurrence, $200 for second occurrence, and $400 for each additional occurrence during the franchise term, or (b) the amount our financial institution charges, whichever is greater; but no more than the fee allowed under applicable law |
| Software enhancements | Will vary depending on the type of enhancement |
| Managed services fees | a) Currently up to $2.89 per workstation per month and up to $30 per server per month under management; b) Currently $17.60 per user per month for help desk and network operations center services during business hours, including the support for one workstation, or $21.73 for 24-hour help desk and NOC services |
| Autotask | $76 per month for 2 users (includes 1 free helpdesk user), and $38 for each additional license, plus a one-time $60 set up fee |
| Privacy Pro license fee | $67 per month |
| Convention fee | Currently $750 |
| Franchise broker resale fee | Then-current fee that broker charges, currently $24,000, or 10% of the purchase price – whichever is higher |
| Death or disability management fee | At least 20% of the GPS Revenue for 90 days (in addition to Royalty and MDF Contributions) |
| Late payment interest | 18% interest per year or highest interest rate the law allows, whichever is less |
| Late report fee | $100 per report |
| Collection costs | All collection costs including reasonable attorneys’ fees |
| Insurance costs | Premiums plus our costs and expenses |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 3 to 8 weeks (1 to 5 weeks pre-training, 2 to 3 weeks training program) |
| Classroom Training | 97 hours |
| On-the-Job Training | 0 hours |
| Training Location | Austin, Texas, Other Designated Location Or Virtually |
| Additional Training | Mandatory training programs or other programs periodically specified, including Internet-based conferences, interactive and other computer-based programs, local and regional meetings, and annual conventions. Certification for technicians is also required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Between 3,000 and 4,500 small business establishments (SBEs), typically 3,500 SBEs |
| Description | Territories are defined using U.S. Postal Service zip codes, containing a specified number of businesses and/or commercial offices that meet demographic criteria. The business office must be located within the Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $8,000 |
| Renewal Conditions | Substantially complied with agreement, no outstanding debts to suppliers/vendors/government, not under investigation for illegal activity, right to maintain premises or secure suitable substitute, equipment/materials meet current standards or refurbished, execute renewal Franchise Agreement (may differ materially), execute general release, comply with current mandatory training/re-certification. |
| Transfer Fee | $15,000 ($8,000 if to an existing franchisee) |
| Transfer Conditions | Proposed transferee meets franchisor's standards, all obligations performed, new guaranties/confidentiality agreements/power of attorney signed, general release executed, transferee completes Training Program (if new person responsible), material terms not burdensome, covenant not to compete affirmed, transferee's obligations subordinated to franchisor, existing franchisee transferee executes current form for all businesses, re-sale checklist completed. |
| Termination for Cause | Franchisor can terminate with cause for curable defaults (30 days to cure, e.g., non-payment of fees) or non-curable defaults (immediate termination, e.g., bankruptcy, felony conviction, abandonment, misuse of Mark, breach of confidentiality/non-compete, material misrepresentation, failure to complete training, failure to maintain insurance, interference with audit, termination of other agreements, violation of law, failure to pay taxes, unapproved transfers). Repeated defaults (3 times) for the same or similar issue also lead to immediate termination. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination/expiration, neither franchisee, Operating Principal, nor any Owner holding 20%+ ownership interest may have ownership interest in, perform services for, loan/lease to, or divert business/clients to a Competitive Business within the Territory, 10 miles of the Territory border, or any other CMIT Solutions Business territory. Exception for less than 3% ownership in publicly traded securities. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an individual, you must participate personally in the direct operation of the Business. If an entity, an approved Managing Owner must own more than 50% of ownership interests, have authority to direct management, and devote sufficient time to the business. An approved Operating Principal must devote all business time and attention to the management and operation of the Business. |
| Required Suppliers | Initial business package (includes logo wear and a laptop), initial marketing package, remote management platform, approved e-mail marketing program, and approved automation systems (Autotask and Salesforce). |
| Supply Restrictions | You must purchase or lease Operating Assets or other products and services only from suppliers or distributors that we designate or approve, which may include or be limited to us or our affiliates. All products and services must comply with System Standards. |
| Franchisor Revenue from Suppliers | In 2021, derived $1,485,812.27 (22.0% of total revenue) from selling technology solutions to franchisees. Approved suppliers pay rebates (1% to 8% of purchases). Service affiliates pay commissions/referral fees (0% to 15% of invoice cost). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
CMIT Solutions Franchise Earnings — Item 19
Average Revenue
$405K
Median Revenue
$223K
Revenue Range
$18K – $9.6M
Sample Size
140 units
Past financial performance does not guarantee future results. Individual results will vary.
CMIT Solutions Litigation & Risk Flags
Clean Litigation RecordCMIT Solutions has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
CMIT Solutions System Growth
Total Units
251
Franchised
251
Company-Owned
0
CMIT Solutions currently operates 251 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 29 | 7 | 237 |
| 2020 | 15 | 11 | 241 |
| 2021 | 16 | 6 | 251 |
Transfers: 6 | Closures: 6
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$6.8M
Total Assets
$83.9M
Audited by Not explicitly named in the report for year ending December 27.
CMIT Solutions Franchise — FAQ
The total investment to open a CMIT Solutions franchise ranges from $102,570 to $168,200, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,950 to $60,450. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
CMIT Solutions charges a royalty fee of 6% of Gross Professional Services (“GPS”) Revenue of gross sales, plus a 2% of GPS Revenue, subject to a Minimum MDF Contribution; At least $2,500 per month on local advertising contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the CMIT Solutions Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from CMIT Solutions to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, CMIT Solutions franchise owners report average revenue of $405K and median revenue of $223K. This is based on a sample of 140 units. Past performance does not guarantee future results.
CMIT Solutions has been franchising since 2010. The FDD shows an investment range of $102,570-$168,200, a 6% of Gross Professional Services (“GPS”) Revenue royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,950 to $60,450 and the total investment ranges from $102,570 to $168,200 depending on location size and market. A minimum of $102,570 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from CMIT Solutions and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with CMIT Solutions or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com