CMIT Solutions Franchise Costs, Fees & FDD

Year Business Began: 1994

Franchising Since: 1998

Headquarters: Austin, Texas

Estimated Number of Units: 275

Franchise Description: CMIT Solutions, LLC is the franchisor. Franchisees operate an information technology (IT) services business under the name “CMIT Solutions” offering a wide variety of IT services, including professional and managed services (managed services is the practice of transferring day-to-day information technology management responsibility to an outside provider as a strategic method for improved effective and efficient business operations), along with alliance partner product and service offerings primarily to small- and medium-sized businesses.
Training Overview: The initial training program is provided for up to three people associated with the business. If franchisees are individuals, they must attend and complete, to the franchisor’s satisfaction, all components of the training program. If franchisees are an entity, the managing owner and operating principal must attend and complete to the franchisor’s satisfaction all components of the training program. The training program consists of two weeks of online training sessions and a week of in-person training and instruction at the franchisor’s headquarters in Austin, Texas. Virtual sessions are designed to prepare franchisees for the final, in-person, training week. The franchisor’s may require franchisees and their personnel (including the managing owner and operating principal, if applicable) to participate in mandatory training programs or other programs that the franchisor periodically specifies to learn about new products or services that CMIT Solutions businesses provide and other appropriate subjects.

Territory Granted: The franchisor typically defines territories by U.S. Postal Service zip codes and reserves the right to establish other criteria such as counties, maps, or rivers and roads to establish the boundaries of the territory. Within the territory, the franchisee and the franchisor will agree that there are a specified number of businesses and/or commercial offices that meet the franchisor’s then-current demographic formulation. Territories will contain between 3,000 and 4,500 small business establishments (SBEs), and the typical territory includes approximately 3,500 SBEs. Under the Franchise Agreement the franchisor grants franchisees an “exclusive” territory. “Exclusive” means that, if franchisees are complying with the Franchise Agreement, then neither the franchisor nor its affiliates will operate, or authorize any other party to operate, a CMIT Solutions business the physical premises of which are located within the territory.

Obligations and Restrictions: If franchisees are an individual, they must participate personally in the direct operation of the business. If franchisees are an entity, an individual who meet a set of requirements and whom the franchisor approves (the managing owner) must at all times be involved in the direct operation of the business during the Franchise Agreement term. Franchisees also must designate an individual whom the franchisor approves (the operating principal) to serve as the business’s manager who will devote all of his or her business time and attention to, and participate personally in, the management and operation of the business. The managing owner may also be the operating principal. Franchisees must offer for sale all onsite information technology solutions, customized training and computer support services, and other services that the franchisor periodically specifies and products that it periodically specifies, and they must do so only in the manner and style that the franchisor periodically specifies, including the method and location of delivery. The franchisor may require franchisees and their employees to be certified or re-certified to offer some services.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are not in default and satisfy certain conditions, they may renew for an additional 10 year term.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. For qualifying veterans or members of the Armed Forces, the franchisor offers a 20% one-time discount on the initial fee.

Estimated Initial Investment

Name of Fee	Low	High
Initial Fee and Territory Fee	$49,950	$60,450
Training Expenses	$2,500	$4,000
Real Property and Leasehold Improvements	Varies; not required
Initial Marketing	$12,000	$12,000
Business Management and Technology System	$2,000	$3,000
Accounting Set-up	$1,500	$1,500
Additional Funds – 6 months	$38,500	$78,500
ESTIMATED TOTAL (excluding real estate costs)	$106,450	$159,950

 
Other Fees

Type of Fee	Amount
Royalty	Initial 12 months after franchisees complete the training program: 6% of GPS revenue. Beginning in month 13: Greater of 6% of GPS revenue or the minimum royalty.
Marketing Development Fund (MDF) Contribution	Initial 12 months after franchisees complete the training program: 2% of GPS revenue. Beginning in month 13: Greater of 2% of GPS revenue or the minimum MDF contribution.
Local Marketing Expenditures	Currently a minimum of $2,500 per month, subject to change.
Additional Attendees or Replacements - Initial Training	$2,000 per person; subject to increase if costs increase.
Software Enhancements	Will vary depending on the type of enhancement.
Technology Fees	Currently $150 per month, but could increase if costs increase.
Managed services Cost of Goods	RMM and AV: Currently up to $2.89 per workstation per month and up to $30 per server per month under management, but could increase if costs increase. Help Desk:  Currently $19.75 per user per month for help desk services during business hours, including the support for one workstation, or $24.75 for 24-hour help desk, but could increase if costs increase.
Software Fees	Varies per program.
Additional LeadsContact List	Average of $1,500 to $2,500, but may vary based on the number of contracts purchased.
Renewal Fee	$5,000
Convention Fee	Currently $850, but could increase if costs increase.
Franchise Broker Resale Fee	Then-current fee that broker charges, currently $24,000, or 10% of the purchase price – whichever is higher.
Transfer Fee	$15,000 if the transfer is to a new franchisee. Franchisees will pay a reduced fee of $8,000 if the transfer is to an existing franchisee who has completed the training program (excludes employees of an existing franchisee). In addition to the transfer fee, franchisees must reimburse the franchisor its actual cost of the broker commission, finder’s fee, or similar charges if the broker finds the buyer.
Management Fee (in Event of Franchisee Death or Disability)	Varies; depends on the extent and duration of the management services offered.
Late Payment Fee	18% interest per year or highest interest rate allowed by law.
EFT Non-sufficient Funds Fee	Either (a) $100 for first occurrence, $200 for second occurrence, and $400 for each additional occurrence, or (b) the amount the franchisor’s financial institution charges, whichever is greater; but no more than the fee allowed under applicable law.
Late Reporting Fee	$100 for first occurrence, $200 for second occurrence, and $400 for each additional occurrence during the term of the Franchise Agreement.
Collection Costs	All collection costs including reasonable attorneys’ fees.
Additional Training Programs	The then-current fee.
Insurance Costs	Premiums plus a minimum $250 administrative fee for the franchisor’s assistance to procure insurance on the franchisee’s behalf.
Non-compliance Fee	Currently, $500 per occurrence, but subject to change.
Indemnification	Will vary under circumstances.
Audit Costs	Actual costs incurred by the franchisor and any third parties (such as an independent accountant) that assist the franchisor in the audit, plus interest as detailed above and payment of any under-reported amounts, its attorneys' fees, travel, and other audit-related expenses, if any.

The above information has been compiled from the FDD of CMIT Solutions. Year of FDD: 2025.
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