About CWE America Franchise
CWE America is a franchise concept that entered the U.S.
market with its franchise program launching in 2023.
The brand brings a specialized business model to American consumers, offering a distinct product and service experience backed by comprehensive training and support systems for its business owners.
CWE America Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | The greater of 8% of Gross Sales or Monthly Minimum Royalty Fee of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% of Gross Sales | National brand fund |
| Total Investment Range | $75,150 – $106,800 | Includes build-out, inventory, working capital |
The investment range of $75K–$107K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of 8% of Gross Sales or Monthly Minimum Royalty Fee) and marketing fee (Up to 4% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Construction and Leasehold Improvements | $0 | $5,000 |
| Lease Deposits – Three Months | $1,500 | $2,500 |
| Furniture, Fixtures and Equipment | $0 | $500 |
| Signage | $0 | $500 |
| Computer, Software and Business Management System | $750 | $2,000 |
| Opening Launch | $18,000 | $18,000 |
| Initial Inventory | $500 | $500 |
| Utility Deposits | $0 | $500 |
| Insurance Deposits – Three Months | $600 | $2,000 |
| Travel for Initial Training | $500 | $2,000 |
| Professional Fees | $1,000 | $8,000 |
| Licenses and Permits | $300 | $800 |
| Additional Funds – Three Months | $2,000 | $14,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $25,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Up to $500 per month, currently $70 per month |
| Audit Fee | Cost of audit (if underreporting of 2% or greater) |
| Local Marketing | Up to $1,600 per month, currently $800 per month |
| Business Management System | Up to $750 per month, currently $260 per month |
| Online Ordering, Customer Rewards, and Gift Cards | Currently not implemented by us but may be implemented in the future |
| Software Fees | Currently $200 per month |
| Local and Regional Advertising Cooperatives | As established by cooperative members but not exceeding the local marketing requirements |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $750 |
| Additional Employee Initial Training | Our then current training fee, currently $500 per person per day |
| Supplemental On-Site Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $500 per day |
| Interest | 18% per annum from due date |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Quality Assurance Audit | Actual costs incurred by us |
| Collections | Actual fees, costs, and expenses |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Non-compliance | Actual fees, costs, and expenses |
| Supplier Review | Actual fees, costs, and expenses |
| Management Service | Actual costs incurred by us but not less than $500 per day, plus expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 2 weeks |
| Classroom Training | 40 hours |
| On-the-Job Training | 40 hours |
| Training Location | Virtual/Online and New York, New York |
| Additional Training | The franchisor may require supplemental on-site training, with an anticipated four sessions per year (face-to-face or remote). Franchisees must also complete initial training for replacement Operating Managers. Additional employee initial training costs $500 per person per day, and supplemental on-site training costs $500 per day per trainer plus expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | An area encompassing 3,000 businesses, based on geographical location |
| Description | The designated territory is a limited and temporary protected area around the approved Office Location. It may be identified by zip code, boundary streets, highways, county lines, designated market area, and/or other recognizable demarcations. This protection is for the first year of the initial term, excluding 'Closed Markets' (captive markets like government facilities, military bases, schools, colleges, and universities). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One additional 10-year term |
| Renewal Fee | $10,000 |
| Renewal Conditions | To renew, franchisees must be in compliance with all agreements, provide 180 days' written notice, sign the then-current Franchise Agreement and related agreements, sign a general release, pay the renewal fee, remodel and upgrade the Office to current standards, and secure the legal right to occupy the premises for the renewal term. Owners and their spouses must also guarantee the new terms. |
| Transfer Fee | $25,000 |
| Transfer Conditions | Transfers require prior written consent from the franchisor, which may be withheld at its discretion. Conditions include providing 30 days' notice, satisfying all outstanding monetary obligations, ensuring the franchisee and owners are not in default, the transferee meeting current franchisee standards (including good moral character, business experience, and financial resources), the transferee not operating a competitive business, the transferee assuming all obligations, the franchisee and owners signing a general release, the transferee completing training, and the transfer complying with all applicable laws. |
| Termination for Cause | The franchisor can terminate for various defaults, some automatically without notice (e.g., bankruptcy, intentional refusal to comply with intent to harm, abandonment, material misrepresentation of financial data, unauthorized transfer, disclosure of confidential information, felony conviction, or violation of Anti-Terrorism Laws). Other defaults allow for a 10-day cure period (e.g., failure to pay fees) or a 30-day cure period (e.g., failure to timely lease/open, non-compliance with operational standards, failure to submit reports, or failure to maintain insurance). |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise, franchisees, owners, and their spouses cannot have any interest in, operate, manage, fund, or perform services for a competitive business (except for a less than 3% interest in a publicly traded company). After termination or expiration, this non-compete extends for 24 months within the Designated Territory, a 25-mile radius around the Designated Territory, and a 25-mile radius of any other Cartridge World Office. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner (or an approved Operating Manager) is required to be personally responsible for the management and overall supervision of the Office and must be on-site. If a franchisee owns multiple Offices, each must be managed and supervised on-site by an Operating Manager. All Owners and their spouses must personally guarantee all franchisee obligations. |
| Required Suppliers | Franchisees must purchase or lease certain source-restricted goods and services from approved or designated suppliers, which may include the franchisor or its affiliates. Specifically, affiliates Arlington Industries, Inc. and CWG International, Inc. are approved suppliers for ink and toner cartridges. |
| Supply Restrictions | Franchisees are restricted to offering and selling only Approved Services and Products and must use only authorized and designated products, supplies, equipment, technology systems, and services. The franchisor may designate itself or its affiliates as exclusive suppliers for certain items. |
| Franchisor Revenue from Suppliers | In fiscal year 2022, the franchisor earned $14,896 in rebates from franchisee purchases, and its predecessor received $174,413. These rebates represented approximately 7.8% of the total revenue of $2,422,354. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may offer direct financing for the Initial Franchise Fee via a promissory note. For an Executive Office or Co-Branded Office, the total financed amount is $35,000 (after a $15,000 down payment on the $50,000 fee), with a 36-month term, 0% APR interest, and monthly payments of $972.00. For a Conversion Business, the total financed amount is $10,000 (after a $15,000 down payment on the $25,000 fee), with a 36-month term, 0% APR interest, and monthly payments of $278.00. A personal guarantee and security agreement (UCC-1) are required. The franchisor does not guarantee third-party financing. |
CWE America Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
CWE America Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
CWE America System Growth
CWE America currently operates 139 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 36 | 194 |
| 2021 | 1 | 22 | 173 |
| 2022 | 0 | 29 | 144 |
Transfers: 11 | Closures: 87
State Registrations
Registered in 23 states: CA, CT, FL, HI, IL, IN, KY, ME, MD, MI, MN, NE, NY, NC, ND, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
CWE America Franchise — FAQ
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