Cartridge World
Date of Incorporation: 1988
Franchising Since: 1997
Headquarters in the U.S.: Emeryville, California
Country of Origin: Australia
Description: Cartridge World North America, LLC is the Master Franchisor of the Cartridge World System in the United States, Central and South America, the Caribbean, and other countries. Cartridge World North America, LLC was formed as a limited liability company in the State of Nevada in June, 2002, and began offering Cartridge World Master Franchises in late 2002. The franchisor offering individual franchises is a Master Franchisee of Cartridge World North America, LLC.
Franchise Offer: The franchise on offer is to operate a retail store generally operating in stand-alone buildings or in strip-shopping centers which provide products and services related to refilling of printer (and other) cartridges, including refilling of inkjet cartridges; remanufacturing and/or sales of laser cartridges; sales of toner, computer hardware (including printers) and software, and ancillary products and services.
Financial Assistance: The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The franchisee must complete the initial training program to the franchisor’s satisfaction before operating a Cartridge World Store. A portion of the training is held at the headquarters in Emeryville, CA. The franchisee must complete a week of in-store training both before and after attending this program.
Territory: The franchisee will be given a designated geographic area known as the ‘Territory’ in which to operate a single Traditional Cartridge World Store at a location to be approved by the franchisor.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years with an option to renew for an additional 10 years. The fee for renewal is 20% of the then current franchise fee subject to a $7,000 minimum.
Obligations and Restrictions: A person who has successfully completed all training and who meets all of the other then-current standards must personally manage the Cartridge World Store on a full-time basis. The current policy is to require each Store to be open for business for a minimum of 54 hours per week, unless the franchisor makes a written exception under applicable circumstances. The franchisee must operate your Cartridge World Franchised Business in accordance with Cartridge World Store System standards, including required products and services.
Total Number of Units: 1,984 units worldwide.
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee | $35,000 | $35,000 |
| Equipment, Freight Inclusive | $45,000 | $55,000 |
| Opening Inventory | $10,000 | $10,000 |
| Computer Hardware and Software | $0 | $1,500 |
| Signs, Furnishings and Fixtures | $10,500 | $22,500 |
| Business licenses, utility deposits or other pre-paid expenses | $300 | $800 |
| Community Grand Opening Support Fee | $8,500 | $8,500 |
| Insurance (1 year coverage) | $1,000 | $1,500 |
| Training Fee | $6,300 for the classroom portion (for the first attendee), and $1,000 for the pre and post training | |
| Facility Services Fee | $2,500 | $2,500 |
| Real Estate | $1,500 | $5,000 |
| Construction and Remodeling | $4,000 | $24,000 |
| Additional Funds (3 months) | $9,500 | $36,000 |
| Total | $135,100 | $209,600 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty | The franchisee must pay 6% of Gross Volume on sales of all goods and services |
| Marketing Fund Contributions | Under the Franchise Agreement, the franchisee can pay up to 4% of Gross Volume on sales of all goods and services. |
| Local Marketing Activities | $400 per month |
| Cartridge World Store Co-ops ("CWSC") | As established by a CWSC |
| Interest on Late Payments | Interest is highest legal rate for open business credit, not to exceed 1.5% per month. |
| Late Fees; Costs of Collection | $25 administrative fee for each late report; the franchisee will pay all reasonable costs of collection that the franchisor incurs |
| Renewal Unit Franchise Fee | 20% of the then Initial Franchise Fee (plus any training fees), subject to $7,000 minimum |
| Convention Registration Fee | Established based on the event |
| Transfer Fee | $5,000 plus then current training costs. |
| Management Fees | Only if the franchisee gets notice of default, and the franchisor appoints a manager; $500 per day management fee, plus expenses |
| Operations Fee | Currently $100 per month (subject to adjustment) |
| Training Costs | Costs/fees determined by training attended/staff participation |
| Audit/Inspection Charge | Amount of understatement of revenues, with interest and late charges, plus costs of audit, if applicable |
| Grant of Security Interest | The franchisee grants the franchisor a security interest in assets and proceeds of Unit Franchised Business |
Date of FDD: 2008
The above information has been compiled from the FDD of Cartridge World along with online sources.
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