Cartridge World Franchise Cost, Revenue & Review 2026
- Investment
- $75K – $107K
- Disclosed sales
- not disclosed
- SBA charge-off
- 22.8%
- on 198 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Cartridge World is a retail franchise selling printer ink and toner cartridges, including refills and remanufactured supplies, to businesses and consumers. Franchisees run a store managing cartridge sales, refills, and business accounts.
FranchiseVerdict summary · 2026
A Cartridge World franchise requires a total initial investment of $75K – $107K, including a $50K franchise fee and an ongoing 8.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 22.8% charge-off rate across 198 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $75K – $107K
- 5th pct Retail
- Avg gross sales
- N/A
- Royalty
- 8.0%
- 34th pct Retail
- Units
- 109
- 30th pct Retail
- SBA charge-off
- 22.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $75K – $107K including a $50K franchise fee, 8.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 38/100 (higher is better). SBA loan charge-off rate of 22.8% across 198 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -28 franchised outlets in the latest year (0 opened, 18 closed) (Item 20).
- DECLINESystem contracting at -35.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- CWE America, LLC
- Predecessor
- Cartridge World USA, LLC
- Prior franchisor entity
- CEO title
- President
- Gregory J. Carafello
- Incorporated in
- NC
- HQ
- 445 S. Main Street, 4th Floor, Davidson, North Carolina 28036
- Auditor
- Reese CPA LLC
- Audited financials
- Franchisor revenue
- $2.2M
- vs $159K prior year
Affiliated brands
- Won Life Holdings
- is associated with multiple brands
- maintains a pr
- Holiday Park Partners
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Gregory J. Carafello
- Headquarters
- NC
- FDD year
- 2024
- States available
- 35
Can you afford it, and what does the money buy?
Entry cost runs 73% below the typical retail franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Construction and Leasehold Improvements | $0 | $5K | |
| Lease Deposits - Three Months | $2K | $3K | |
| Furniture, Fixtures and Equipment | $0 | $500 | |
| Signage | $0 | $500 | |
| Computer, Software and Business Management System | $750 | $2K | |
| Opening Launch | $18K | $18K | |
| Initial Inventory | $500 | $500 | |
| Utility Deposits | $0 | $500 | |
| Insurance Deposits - Three Months | $600 | $2K | |
| Travel for Initial Training | $500 | $2K | |
| Professional Fees | $1K | $8K | |
| Licenses and Permits | $300 | $800 | |
| Additional Funds - Three Months | $2K | $15K | |
| Total initial investment | $75K | $107K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $75K – $107K
- Top 40% of category vs category
- Liquid capital req'd
- $2K – $15K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 8.0%
- Set by a formula · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $70 |
| Transfer fee | $25K |
| Renewal fee | $10K |
| Inventory (initial) | $500 – $500 |
| Total fee load | 12.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Cartridge World makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Cartridge World unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 12.0% — above the Retail median of 8.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -35.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How Cartridge World Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 109
- Opened
- 0
- Last reporting year
- Closed
- 18
- Turnover rate
- 8.4%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -35.5%
- Net unit change over 3 years
- 3-yr CAGR
- -35.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Transferred
- 1
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 9
- Franchisor's next-year forecast
- Termination rate
- 0.8%
- Franchisor-initiated terminations
- Ceased ops
- 0.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 35 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
35
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 198
- Loan volume
- $25.2M
- Median loan
- $120K
- 50th percentile
- Charge-off rate
- 22.8%
- on 198 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 77.2%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 88
- Defaults
- 39
- Typical loan rate
- 6.5%
- avg rate to borrowers
- Franchised industry avg
- 12.1%
- brand above franchise avg ↑
- Jobs supported
- 595
- 2.7 per loan
- Lender concentration
- 7%
- top lender's share
Borrower mix: 14% went to startups / new businesses, 86% to established operators
Franchise vs independent — in office supplies and stationery, franchised businesses charge off at 12.1% vs 20.1% for independents — franchising is associated with 40% lower SBA default risk in this category.
Vintage analysis
Cartridge World charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Top lenders financing Cartridge World franchisees
Showing 3 of 88 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Cartridge World from SBA 7(a) FOIA data.
- Principal loss rate
- 15.1%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 6.51%
- Avg chargeoff amount
- $86K
- Lender concentration
- 6.7%
- Job velocity
- 2.7 per $100K
- NAICS benchmark
- 22.8%
- NAICS 453210
- Jobs supported
- 595
Top SBA lendersTop lender holds 7% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Community West Bank | 12 | $1.8M | 58.3% |
| 2 | Popular Bank | 10 | $934K | 60.0% |
| 3 | Wells Fargo Bank National Association | 7 | $870K | 28.6% |
| 4 | First National Bank of Pennsylvania | 7 | $1.2M | 42.9% |
| 5 | The Huntington National Bank | 6 | $647K | 20.0% |
| 6 | JPMorgan Chase Bank, National Association | 5 | $374K | 20.0% |
| 7 | PNC Bank, National Association | 5 | $537K | 40.0% |
| 8 | Comerica Bank | 5 | $806K | 0.0% |
| 9 | TD Bank, National Association | 5 | $528K | 0.0% |
| 10 | First Commonwealth Bank | 4 | $425K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 19 | 5 | 26.3% |
| MNMinnesota | 14 | 3 | 23.1% |
| CACalifornia | 12 | 7 | 58.3% |
| OKOklahoma | 11 | 1 | 9.1% |
| PAPennsylvania | 10 | 2 | 20.0% |
| FLFlorida | 9 | 4 | 44.4% |
| GAGeorgia | 8 | 2 | 40.0% |
| MOMissouri | 8 | 1 | 12.5% |
| NCNorth Carolina | 8 | 3 | 37.5% |
| MTMontana | 7 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 22.8% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 22.8% — 42% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Cartridge World presents extreme risk: a contracting franchise system (down 20.7% YoY to 109 units) with no financial transparency, unprotected territory, and potential franchisor financial instability, making investor recovery unlikely.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Reese CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY ended Dec 31, 2023 (yr1) and the stub period Dec 1, 2022 through Dec 31, 2022 (yr2); franchisor CWE America LLC was established Oct 13, 2022 and has fewer than three years of audited statements. 2023 revenue: royalty fees 949,660; franchise fees 17,922; administrative services 448,842; advertising fees 579,180; rebate fees 176,348.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 38 / 100 verdict
- 01MINORSystem declining rapidly: 20.7% unit contraction YoY indicates shrinking franchise base and potential market saturation or model failure
- 02MINORNo financial disclosure: Absence of Item 19 (Average Financial Performance) makes ROI analysis impossible; cannot validate investment viability
- 03MINORUnprotected territory: Franchisees face cannibalization risk from company-owned or competing franchisee locations within their market
- 04MINORHigh minimum royalty burden: 8% or monthly minimum creates fixed overhead even during low-revenue periods; unsustainable during downturns
- 05MINOROnly 109 remaining units: Severely diminished system size limits brand recognition, supply chain leverage, and peer support network
- 06MED10-year commitment: Long lock-in period with no exit clause mentioned; risky given market decline trajectory
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 12.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 3,000 businesses |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Mecklenburg County, North Carolina |
| Jury trial waiver | Yes |
| Governing law | NC |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 40 hrs
- Training location
- Virtual/Online (Remote) and in-store location (New York, NY)
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Offered
- Item 10
- POS system
- Fusion Platform
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Fusion Platform
Item 20 · call current owners
Franchisee Contacts
146 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cartridge World franchise?
The total investment to open a Cartridge World franchise ranges from $75K – $107K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cartridge World franchise owners earn?
Cartridge World makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Cartridge World?
Cartridge World is franchised by CWE America, LLC. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Cartridge World FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Cartridge World FDD and qualifies whose outlets they describe.
What is Cartridge World's franchise failure rate?
Based on SBA 7(a) loan data, Cartridge World has a charge-off rate of 22.8% across 198 loans, meaning 22.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Cartridge World franchise locations are there?
As of their most recent FDD filing, Cartridge World has 109 total units in the United States, including 107 franchised units and 2 company-owned units.
Is Cartridge World a good franchise to buy?
FranchiseVerdict rates Cartridge World as a C-grade franchise with a verdict score of 38 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.