Cartridge World Franchise Costs, Fees & FDD

Year Business Began: 1988

Franchising Since: 1997

U.S. Headquarters: Davidson, North Carolina

Country of Origin: Australia

Estimated Number of Units: 110 (US only)

Franchise Description: The franchisor is CWE America, LLC. Cartridge World Australia Pty Ltd. is the owner of the licensed marks and the Cartridge World master franchise business system in Australia and other countries throughout the world other than the United States. The franchise that the franchisor offers is for Cartridge World, a business that provide products and services related to printer cartridges, inkjet cartridges, laser cartridges, toner, printers, computer hardware and software, and other products and services. The franchise may be established as either a stand-alone office location (executive office) or a co-branded Cartridge World operating within another business establishment (co-branded office).
Training Overview: If this is the franchisee’s first franchise the franchisor will provide initial training for the franchisee (or if the franchise is a corporate entity, the managing owner), plus one designated manager. Franchisees or their managing owner and their general manager must successfully attend and complete the initial training program to the franchisor’s satisfaction no later than 45 days before the opening of the office. The initial training program takes place over an approximate two week period (one week in-store on the job training and one week corporate instructed training). Training is conducted online, virtually or at a store location. Any in person training may be held at a facility the franchisor designates. After the opening of the office the franchisor reserves the right to require that franchisees (or their managing owner if the franchisee is a corporate entity) attend a system-wide training program that the franchisor may establish in its discretion.

Territory Granted: Franchisees will not receive an exclusive territory and they will receive a limited and temporary protected area comprised of their designated territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. However, during the first year following the date franchisees sign their Franchise Agreement, provided franchisees are not in default of their obligations to the franchisor or its affiliates and except as to its Reserved Rights as set forth in the FDD, the franchisor will not establish or open and it will not grant another franchisee the right to establish or open an office at an office location within the designated territory. While there is no minimum size for a designated territory, the scope and size of the area comprising the designated territory will, generally, be a territory encompassing an area that contains 3,000 businesses, based on geographical location, as of the date of the Franchise Agreement.

Obligations and Restrictions: The Franchise Agreement requires that franchisees (or, if they are a corporate entity, their designated managing shareholder, member or partner) be personally responsible for the management and overall supervision of their office (the managing owner). The managing owner must complete, to the franchisor’s satisfaction, the initial training program and be approved by the franchisor. While the franchisor recommends that the managing owner personally participate in the day-to-day management and on-site supervision and operations of the office, franchisees may hire an operating manager to supervise and manage the day-to-day on-site operations of the office provided that the operating manager meets certain criteria. Franchisees may only sell the approved services and products as specified in the manuals or otherwise approved by the franchisor in writing and may only sell the products and services required by the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees meet the conditions for renewal, they may renew the franchise for one additional 10-year term.

Financial Assistance: The franchisor may offer direct financing, but neither the franchisor nor its affiliates are obligated to provide any funding to franchisees. At this time, the franchisor and its affiliate are the only potential lenders under the direct financing agreement. The franchisor reserves the right to form or designate additional affiliates as potential lenders in the future. The franchisor may in the future also provide indirect financing through third parties and receive referral fees from these third party providers. The terms of financing with third parties will vary.

Estimated Initial Investment

Name of Fee	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
ESTIMATED TOTAL	$75,150	$106,800

 
Other Fees

Type of Fee	Amount
Royalty	The greater of 8% of gross sales or the monthly minimum royalty fee.
Brand Development Fund	Up to 4% of gross sales.
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.
Technology	Up to $500 per month, currently $70 per month.
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	The then current conference fee, not greater than $750.
Additional Employee Initial Training	The then current training fee, currently $500 per person per day.
Supplemental On-Site Training	The then current daily rate per trainer, plus expenses the franchisor incurs. 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.
Audit	Cost of audit.
Quality Assurance Audit	Actual costs incurred by the franchisor.
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 the franchisor but not less than $500 per day, plus expenses.
Transfer	$25,000
Renewal	$10,000

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

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