Cyberbacker Franchise Costs, Fees & FDD

Year Business Began: 2018

Franchising Since: 2021

Headquarters: Ogden, Utah

Estimated Number of Units: 40

Franchise Description: The franchisor is Cyberbacker International, Inc. Franchisees operate a business that connects business owners with outsourced virtual assistants called “cyberbackers” who provide remote administrative assistance and other types of remote assistance to business owners. Cyberbackers perform various tasks for business owners in areas such as administrative, employee training, marketing, customer service, lead generation, sales, etc. Clients will vary in size from small to large business owners with various levels of support needs.
 
Training Overview: The operating principal and the franchisee’s support team are required to attend and successfully complete the initial training program. The initial training program is held online and/or through video conferencing. The initial training should take approximately one to two days to complete. As part of the initial training/bootcamp, franchisees must pay a launch team support fee of $10,000. This fee is to help cover the costs of the launch team that will assist franchisees in launching their market for 90 days. Additional training will be provided through video conferencing for a fee which is currently $100 per hour. At this time, no additional trainings or refresher courses are required.

Territory Granted: Under the Franchise Agreement, the franchisor will grant franchisees the right to use the system and proprietary marks solely to target an industry-specific market within a certain geographical area. The size and characteristics of the market will be determined prior to signing and are described in the Franchise Agreement. The industry-specific market will be exclusive to the franchisee, meaning that neither the franchisor, nor other franchisees will be able to sell contracts using the Cyberbacker trademark to clients in the franchisee’s industry-specific market within the geographic area without awarding those contracts to the franchisee. However, if a client is within a franchisee’s geographic area but not in their industry-specific market, the franchisor does not have to award that contract to that franchisee. If franchisees fail to achieve and/or maintain their target metrics in their market, then they would be required to pay the franchisor a monthly fee equal of $800/mo. for each client contract below the number of required minimum client contracts, not to exceed 75% of their monthly commission.

Obligations and Restrictions: The “operating principal” is: a) if the franchisee is an individual, that individual; or b) if the franchisee is an entity, an individual that owns at least 20% of the ownership and voting interests in the franchisee entity (unless the franchisee obtains written approval of a lower percentage), has authority over all business decisions related to the franchise business, and has the power to bind the franchise business in all dealings with the franchisor. The operating principal must personally participate in the direct operation and supervision of the franchise business. The operating principal is 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 so that the franchise business is operating at maximum capacity and efficiency. Neither franchisees, their operating principal, nor their management employees can have an interest in or business relationship with any competing business during the term of the Franchise Agreement and must keep free from activities that would be detrimental to or interfere with the operation of their franchise business or detrimental to the franchise system. Franchisees may provide and sell only those products and services specified and approved by the franchisor in writing and only to those customers within their designated market. No product or service may be added to, altered, or discontinued by the franchise business unless it is first approved by the franchisor in writing.

Term of Agreement and Renewal: The length of the initial franchise term is five years. If franchisees are in good standing at the end of the franchise term, they can enter into a new successor Franchise Agreement for an additional term of five years.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. However, potential financing is available to franchisees offered through the franchisor’s affiliate Cyber Capital, L.L.C.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$30,000	$30,000
Initial Training	$0	$500
Support Team Costs	$5,850	$7,800
Launch Team Support Fee	$10,000	$10,000
Computer and Smartphone	$150	$2,650
Business Coach – first 3 months	$3,000	$4,500
Construction / Leasehold Improvements	$0	$10,000
Adapting the Office to the Franchisor’s General Specifications	$0	$2,500
Rent (3 months of rent, plus a security deposit)	$0	$4,000
Misc. Opening Costs	$1,000	$6,000
Additional Funds – 3 months	$2,000	$7,000
ESTIMATED TOTAL	$52,000	$84,950

 
Other Fees

Type of Fee	Amount
Brand Development Fund Fee	Currently, $0. (3% of each client’s contract price, if established.)
Support Team Costs	$2,600 per month (subject to an annual 5% increase). The monthly fee is $1,300 for the franchisee’s Growthbacker and $1,300 for your Careerbacker.
Technology Suite Fee	Currently, $50 per month, per account.
Late Charges	$25 per day up to a maximum of 2x the total amount owing per instance per late payment and up to $500 per late report.
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.
Audit Charge	Cost of audit.
System Non-Compliance Fines and Charges	$250 per violation.
Replacement Training	$750 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.
Market Default Fee	$800/mo. for each client contract below the number of required minimum client contracts, not to exceed 75% of the franchisee’s monthly commission.
Interim Management Fee	50% of the fees payable to the franchisee.
Supplier Evaluation Fee	$25, plus actual expenses of evaluation, at cost.
Customized Marketing Materials	Per project cost or negotiated hourly rate between $100 and $150 per hour.
Fees on Default	The franchisor’s costs associated with the franchisee’s default.
Post-Termination Fees	Actual costs.
Franchise Agreement Transfer Fee	$5,000
Minority Interest Transfers (40% or less)	The franchisor’s legal fees and administrative costs related to the transfer.
Transfer Training Fee	$500, or the then-current fee for additional persons at initial training.
Indemnification	The franchisor’s damages and costs.
Non-Compete Violations	The franchisee’s profits from the competing business or what the franchisor would have received in royalties.
Dispute Resolution Fees	The franchisor’s legal fees and costs if it prevails.

The above information has been compiled from the FDD of Cyberbacker. Year of FDD: 2024.

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