About Cyberbacker Franchise
Cyberbacker is a virtual staffing franchise that connects businesses with skilled remote professionals to handle administrative, marketing, and operational tasks.
The brand leverages the growing demand for virtual assistance and remote workforce solutions, helping companies reduce overhead costs while maintaining high quality support.
Cyberbacker launched its franchise program in 2021.
Cyberbacker Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | Commission-based revenue model for franchisor, no traditional royalty rate disclosed. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, $0; 3% of each client’s contract price, if established | National brand fund |
| Total Investment Range | $76,500 – $106,100 | Includes build-out, inventory, working capital |
The investment range of $77K–$106K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Commission-based revenue model for franchisor, no traditional royalty rate disclosed.) and marketing fee (Currently, $0; 3% of each client’s contract price, if established) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $30,000 | $30,000 |
| Initial training | $0 | $500 |
| Support team costs | $35,000 | $35,000 |
| Launch team support fee | $5,000 | $5,000 |
| Computer and smartphone | $500 | $1,600 |
| Business Coach - first 3 months | $3,000 | $4,500 |
| Construction/leasehold improvements | $0 | $10,000 |
| Adapting your office to our general specifications | $0 | $2,500 |
| Rent | $0 | $4,000 |
| Misc. opening costs | $1,000 | $6,000 |
| Additional funds – 3 months | $2,000 | $7,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | No renewal fee |
| Technology Fee | Currently, $90 per month, per account |
| Audit Fee | Cost of audit |
| Support Team Costs | $35,000 for your first year and $45,000 per year thereafter (or higher if you add additional support team members), subject to a 5% increase per year |
| Market Default Fee | $800/mo. for each subscription below the number of required minimum subscriptions, not to exceed 75% of your monthly commission |
| Late Charges | $25 per day |
| Non-Sufficient Fund Fees | $50 per insufficient draft or the maximum amount allowed by applicable state law, whichever is less |
| Interest on Late Fees and Reports | 18% interest or maximum rate permitted by state law |
| System Non-Compliance Fines and Charges | Amounts to be specified in our manuals, currently ranging between $100 and $1,000 |
| New Operating Principal or New Support Team Member Training | $500 per person |
| Additional Training or Assistance | $100 per hour |
| Insurance Reimbursement Fee | Reimbursement of premium amount, plus 10% |
| Conference or Seminar Fee | $500 to $1,000 per person |
| Interim Management Fee | 50% of the fees payable to you |
| Supplier Evaluation Fee | $25, plus actual expenses of evaluation, at cost |
| Additional Copies of Marketing Materials | Our costs, plus 10%, and the cost for shipping and handling |
| Fees on Default | Attorney’s fees, costs, interests, and audit costs |
| Post-Termination Fees | Varies |
| Non-Compete Violations | Varies |
| Minority Interest Transfers (40% or less) | Our legal fees and administrative costs related to the transfer |
| Transfer Training Fee | $500, or our then-current fee for additional persons at initial training |
| Indemnification | Varies |
| Dispute Resolution Fees | Varies |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately 1 to 2 days |
| Classroom Training | 7-11 |
| On-the-Job Training | 0 |
| Training Location | online and/or through video conferencing |
| Additional Training | Any new operating principal or support team members must complete the initial training program before taking over as operating principal or assuming a position on your support team. Our fee for this additional training is currently $500 per person. Additional training will be provided through video conferencing for a fee which is currently $100 per hour. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | No minimum geographic area, but we do not plan on approving any industry-specific markets with less than 300 potential clients in that market/geographic area. |
| Description | Franchisees purchase exclusive industry-specific markets within a specific geographic area. For example, a franchisee’s industry-specific market could be all the accountants and bookkeepers in Orange County, California. Other franchisees may not solicit clients within your industry-specific market, and you may not solicit potential or actual clients in another franchisee’s market. The franchisor reserves the right to market and sell client contracts under the Cyberbacker® marks both within and outside your area using various distribution channels, but will award you any contract in your industry-specific market if it is for a client located within your geographic area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | additional term of 5 years |
| Renewal Fee | No renewal fee |
| Renewal Conditions | Must be in good standing, not in default, modernize franchise to then-current standards, sign the then-current successor franchise agreement (which may have materially different terms), and sign a release (subject to state law). Must give notice of intent to renew between 6 and 12 months prior to expiration. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Franchisor approval required (not unreasonably withheld). Conditions include: franchisee not in default, all fees current, new franchisee qualifies, transfer and training fees paid, purchase agreement approved, training for new transferee arranged, new franchisee signs then-current franchise agreement, a release is signed by you. Subject to state law. |
| Termination for Cause | Franchisor can terminate if franchisee materially breaches and fails to cure within 15 or 30 days, depending on the breach. Non-curable defaults include felony conviction, fraud, repeated defaults, public safety threat, abandonment, trademark misuse, unauthorized transfer, false reporting, unauthorized competition, failure to obtain financing, or default of another agreement. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business for 2 years within former market, or within 30 miles of any clients serviced, or within 20 miles of any other franchisee’s market or franchisor headquarters. For 3 years after termination, cannot solicit former customers of your franchise business or franchisor/affiliate customers with whom you interacted. Non-competition provisions are subject to state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Your operating principal must personally participate in the direct operation and supervision of the franchise business. They are not required to work a certain or minimum number of hours but must work sufficient hours to operate the franchise and supervise the support team. Primary tasks include managing client relations and overseeing the support team (Headbacker, Growthbacker, Careerbacker). The operating principal must attend all required training, annual meetings, be involved in personnel decisions, market demographics education, and be trained on all applicable software and operating systems. |
| Required Suppliers | Cyberbacker, Inc. for Support Team, Cyber Assistants and Cyberbackers, Billing and Client Contract Fulfillment, Client Contracts, Client Waivers. Franchisor for Email, Phone, and Video Conferencing Subscriptions and Software. |
| Supply Restrictions | You must operate your franchise business according to our system as outlined in the franchise agreement and the manuals, including purchasing, or leasing certain items or services according to our specifications, or from approved suppliers, that could be us or our affiliates. You must not deviate from these specifications without our prior written consent. |
| Franchisor Revenue from Suppliers | In the last fiscal year ending December 31, 2021, we did not collect any money or obtain any revenues from the sale of these products and services to franchisees. However, in the last fiscal year ending December 31, 2021, our affiliate Cyberbacker, Inc. collected $455,000 that was paid by franchisees for the support team costs. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Our affiliate Cyber Capital, L.L.C. offers financing up to $75,000, not to exceed 75% of the initial fees. The term is 6 to 24 months with 6 to 24 monthly payments. The interest rate is Prime rate plus 3.25% on loans up to $50,000, and Prime rate plus 2.25% on loans over $50,000. There are no finance charges or debt prepayment penalties. Late fees are $50 per late payment. Security is a promissory note, personal guaranty, and a security interest in commissions earned by the borrower from Cyberbacker International, Inc. and/or Cyberbacker, Inc. Each individual owner of the franchise must be a loan guarantor. Borrower must waive presentment for payment, demand, protest, and further notice of dishonor of any kind. The loan will not be sold or assigned to a different third party, and Cyberbacker International, Inc. receives no consideration from the lender for loans made to franchisees. |
Cyberbacker Franchise Earnings — Item 19
Cyberbacker does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Cyberbacker 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.
Cyberbacker System Growth
Cyberbacker currently operates 13 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 0 | 1 |
| 2020 | 0 | 0 | 1 |
| 2021 | 13 | 0 | 14 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Anderson Bradshaw PLLC for year ending December 31.
Cyberbacker Franchise — FAQ
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